On January $1,2020$ Your Company issued $$100,000$ of $6\%$ convertible $($cumulative$)$

preferred stock. Each $$100$ preferred share is convertible into $3$ shares of common

stock. Your Company's Income before taxes in $2020$ was $$400,000$ and its tax rate is

$20\%.$ The company has $100,000$ shares of common stock outstanding throughout

None of the preferred stock was converted in $2020.$ What is diluted EPS?

$$3\mathrm{.}11$

$$3\mathrm{.}14$

$$3\mathrm{.}20$

$$3\mathrm{.}05$