Sheridan Ltd. had after-tax earnings in 2015. The company followed a fiscal year with an end of Dec 31, 2015. Please see the following in regards to its capital structure: Long-term debt: Bonds payable, due 20X11, 12% Bonds payable, due 20X14, $10,000,000 face value, 3% interest payable annually (effective interest rate is 7%), convertible into common shares at the rate of one share per $100 (Balance outstanding at 20X4-$7,190,567) Shareholders' equity Preferred shares, $4.50, no-par, cumulative, convertible into common shares at the rate of two common shares for each preferred share, shares outstanding, 150,000 Preferred shares, $2.50, no-par, cumulative, convertible into common shares at the rate of one common share for each preferred share, shares outstanding, 400,000 Common shares, shares outstanding, 1,500,000 Options to purchase common shares (options have been outstanding all year): Purchase price, $20; expire 20X11, 100,000 options Purchase price, $52; expire 20X14, 200,000 options Each option allows the purchase of one share. Transactions during 20X5: On 1 July, 400,000 common shares were issued on the conversion of 200,000 of the $4.50 preferred shares. On 1 December, 100,000 common shares were issued for cash. Additional information: Average common share price, stable during the year, $40 Tax rate, 25% Quarterly dividends were declared on 31 March, 30 June, 30 September, and 31 December Please calculate Basic Earnings per share and diluted earnings per share $5,000,000 $7,393,907