Publisher Clearing House Corporation Balance Sheet (partial) At December 31, 2020 Long-term debt Notes payable, 14%, $1,000,000 8% convertible bonds payable, 2,500,000 10% convertible bonds payable, 2,500,000 Total long-term debt $6,000,000 Stockholders' equity 8% cumulative, convertible preferred stock, par value $100, 100,000 shares authorized, 25,000 shares issued and outstanding, $2,500,000 Common stock, par value $1, 5,000,000 shares authorized, 500,000 shares issued and outstanding 500,000 Additional paid-in capital 2,000,000 Retained earnings 9,000,000 Total stockholders' equity $14,000,000 Notes and Assumptions December 31, 2020 1. Options were granted in July 2018 to purchase 50,000 shares of common stock at $25 per share. The average market price of Webster's common stock during 2020 was $40 per share. All options are still outstanding at the end of 2020. 2. Both the 8 percent and 10 percent convertible bonds were issued i 2019 at face value. Each convertible bond is convertible into 50 shares of common stock. (Each bond has a face value of $1,000.) 3. The 8 percent cumulative, convertible preferred stock was issued at the beginning of 2020 at par. Each share of preferred is convertible into two shares of common stock. 4. The average income tax rate is 20 percent. 5. At January 1, 2020, there were 400,000 shares outstanding. During 2020 the following transactions occured with respect to common stock: March 1, 2020- 50,000 shares were issued July 1, 2020- 100,000 shares were issued October 1, 2020- 100,000 shares were issued December 1, 2020- 150,000 shares were reacquired. 6. Preferred dividends were not declared in 2020. 7. Net income was $1,750,000 in 2020. 8. No bonds or preferred stock were converted during 2020. REQUIRED: Compute Basic and Diluted EPS. Show all work and calculations