On December 31, 2021, Carousel Inc. had 900,000 common shares outstanding. In addition, the company had 225,000 non-cumulative $1 preferred shares outstanding, which were convertible into 600,000 common shares in total. No dividends were declared in 2021. Net income for 2021 was $1,350,000, and the income tax rate for the company is 40%. Diluted earnings per share for 2021 is: $0.75 $1.50 $1.25 $0.90