The Archdale Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Archdale Company is authorized to issue 300,000 shares of $1 par value common stock and 45,000 shares of 4%, $30 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 6% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Requirement 8. The Archdale Company wants to expand and is considering options for raising additional cash. The company estimates net income before the expansion of $230,000 in 2019 and that the expansion will provide additional operating income of $62,000 in 2019. The company intends to sell the shares of treasury stock, so use issued shares for the analysis rather than current shares outstanding. Compare these options, assuming a 40% income tax rate: Plan 1: Issue 8,000 additional shares of common stock for $48 per share. Plan 2: Issue $220,000 in 15-year, 16% bonds payable. Which option will contribute more net income in 2019? Which option provides the highest EPS? First, complete the table below. (Complete all answer boxes. Enter a "0" for any zero amounts. Round the earnings per share amounts to the nearest cent.) Plan 1 Plan 2 Net income before new project Expected income on the new project before interest and income tax expenses 0 Less: Interest expense 35,200 Project income before income tax Less: Income tax expense Project net income Net income with new project Earnings per share with new project