Key Company for 2018 kiey Company P16-8 (L05) (Computation of Basic and Diluted EPS) The information below pertans w $1,200,000 2,000,000 Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 Average market price of common stock 4,000,000 6,000,000 40% $25 per share Concepts for Analysis 885 There were no chane is no tresury ste stock at $20 per sha e no changes during 2018 in the number of common shares preferred shares or convertible bonds outstanding. There sury stock. The company also has common stock options (granted in a prior year) to purchase 75,000 shares of common 20 per share. Instructions (a) Compute basic earnings per share for 2018. (b) Compute diluted earnings per share for 2018. Dimidond and Discontinued Operations) Christina Corporation is preparing the comparative