Problem #3 Tammy's Tortolini Corp. reported $2,611,500 of net income for the year ended December 31, 2005. The company had 1,180,000 shares of common stoc issued and outstanding throughout the entire year of 2005 and paid taxes at a rate of 35%. In addition the following other securities were carried by the company a 100,000 shares convertible preferred stock $100 par, 22% cumulative a'as 5x100) Oto Each share of preferred stock is convertible into 1.5shares of common b 80,000 shares convertible preferred stock $100 par, 2.90% cumulative a C $800,000 of 6% $1,000 convertible bonds-each $1,000 bond is convertible d $900,000 of 8% $1,000 convertible bonds-each $1,000 bond is convertible e Common stock options to purchase 500,000 shares of common stock at Each share of preferred stock is convertible into 1.5 shares of common into 20 shares of common stock into 30 shares of common stock $18 per share. The average market price of the common stock was $20 per share. Instructions 1 Compute basic earnings per share for 2005 2 Compute diluted earnings per share for 2005 show all work