Must Show Work WEBSTER CORPORATION BALANCE SHEET (PARTIAL Long-term debt Notes payable, 14% 8% convertible bonds payable 10% convertible bonds payable $ 1,000,000 2,500,000 2.500.000 Total long-term debt Stockholder' equity 10% cumulative, convertible, preferred stock, par value S100; 100,000 shares authorized, 25,000 shares issued and outstanding Common stock, par value $1, 5,000,000 shares authorized, $ 2,500,000 500,000 shares issued and outstanding Additional Paid-in capital Retained earnings 500,000 2,000,000 Total stockholders' equity Notes and Assumptions December 31, 2019 1. Options were granted in July 2017 to purchase 50,000 shares of common stock at $20 per share. The average market price of Webster's common stock during 2019 was $30 per share. All options are still outstanding at the end of 2019. 2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each convertible bond is convertible into 40 shares of common stock. (Each bond has a face value of $1,000.) The 10% cumulative, convertible preferred stock was issued at the beginning of 2019 at par. Each share of preferred is convertible into four shares of common stock. 3, 4. The average income tax rate is 40%. 5. The 500,000 shares of common stock were outstanding during the entire year. 6. Preferred dividends were not declared in 2019 7. Net income was $1,750,000 in 2019. 8. No bonds or preferred stock were converted during 2019 Required: Using the information above, compute Basic EPS and Diluted EPS for Webster Corporation for 2019