The board of directors of Gibson Corporation is considering two plans for financing the purchase of new plant equipment. Plan #1 would require the issuance of $4,000,000,6%,20-year bonds at face value. Plan \#2 would require the issuance of 100,000 ordinary shares with a $5 par value which are selling for $40 per share on the open market. Gibson Corporation currently has 100,000 ordinary shares outstanding, and the income tax rate is expected to be 30%. Assume that income before interest and income taxes is expected to be $800,000 if the new factory equipment is purchased. Instructions Calculate net income and earnings-per-share for each plan and indicate which plan is better in terms of reporting higher net income and earnings per share