Problem 3 On January 1, 2019, Paul acquired 80% of Saul. Information regarding the income and equity structure of the 2 companies as of the year ended December 31, 2019, is as follows: Internally generated net income Common shares outstanding during the year Warrants to acquire Paul stock, outstanding during the year Paul Corp $114,000 Saul Corp $72,000 25,000 4,000 12,000 1,000 1,200 8% convertible (into Saul shares), $100 par preferred shares outstanding during the year Nonconvertible preferred shares outstanding 1) The warrants to acquire Paul stock were issued in 2018. Each warrant can be exchanged for one share of Paul stock at an exercise price of $14 per share 2) Each share of convertible preferred stock can be converted into 3 shares of Saul common stock. The preferred stock pays an annual dividend of $9,600. Paul owns 70% of the Convertible preferred stock. 3) The nonconvertible preferred stock was issued in 2017, and pays a 6 month dividend of $750 Compute the basic EPS for the year ended December 31, 2019 500