Selected information from Able Company's financial activities is as follows: .Net Income was $720,000. 1,000,000 shares of common stock were outstanding on January 1, . 1,000 shares of 8%, $1,000 par value preferred shares were outstanding on January 1. . The tax rate was 40%. . The average market price per share for the year was $20. 6,000 shares of 3%, $500 par value preferred shares, convertible into common shares at a rate of 40 common shares for each preferred share, were outstanding for the entire year. Able's basic and diluted earnings per share (EPS) are closest to: Basic EPS Diluted EPS A) $0.64 $0.64 B) $0.55 $0.52 $0.55 $8.55