Spartan Co. has the following selected securities outstanding all year:

Preferred stock, cumulative, 5%, $100 par, 3,000 shares

Common stock, $1 par, 18,000 shares

Bonds payable, $80,000 value, 7%, convertible into 2,000 shares of common stock

Net income for the year is $79,200; the income tax rate is 30%.

What is Spartan Co.'s diluted EPS, rounded.?

Question 1 options:

A.	$3.49
B.	Bonds are antidilutive
C,	$3.01
D.	$3.41