please show clear work for #5. the correct answer is highlighted.

Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 7.5% convertible bonds outstanding during 2018. The preferred stock is convertible into 40,000 shares of common stock. During 2018 , Hanson paid dividends of $.90 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2018 was $600,000 and the income tax rate was 30%. 4. Basic earnings per share for 2018 is (rounded to the nearest penny) a. $2.20. b. \$2.42. c. \$2.51. d. \$2.70. EPS=200k600k(20k$3)=200k540k=$2.70 5.Diluted earnings per share for 2018 is (rounded to the nearest penny) a. $2.08. b. $2.11. c. $2.29. d. $2.50