PROBLEM 5 - Earnings Per Share (20 points) The Degas Corporation had the following outstanding stocks, bonds and options as of January 1, 2020. All securities had been sold at par or face value. TYPE OF SECURITY PAR OR FACE VALUE NUMBER OF SHARES OR BONDS OR OPTIONS CONVERSION OR EXERCISE TERMS Common stock $.25 400,000 N/A 6% cumulative convertible preferred stock $150 80,000 3 shares of common for each share of preferred 10% convertible bonds $1,000 900 25 shares of common for each $1,000 convertible bond Stock options, granted 1/1/20 50,000 One share per option; exercise price of $60 per share During 2020, Degas engaged in the following transactions involving stockholders= equity DATE TRANSACTION January 31, 2020 Purchased 24,000 shares of treasury stock at $70 per share April 30, 2020 Reissued 12,000 shares of treasury stock at $65 per share Additional information: 1. Net income for the year was $2,032,000. 2. The income tax rate for 2020 was 20%. 3. The average market price of Degas common stock during 2020 was $50 per share. Required Calculate Basic and Diluted EPS for Degas Corporation for 2020