Problem 16-8 The information below pertains to Ayayai Company for 2018. $1,210,000 1,970,000 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 4,200,000 5,820,000 40% $25 per share There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.) Basic earnings per sharet (b) Compute diluted earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share Click if you would like to Show Work for this question: Open Show Work