The following information pertains to Degas Corp. for 2014: $3,800,000 $2,000,000 Net income for the year 6% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 30 shares of common stock. 7% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 6 shares of common stock. Common stock options (granted in a prior year) to purchase 60,000 of common stock at $18 per share Tax rate Market price of common stock at Dec. 31, 2014 Average market price of common stock $3,000,000 $ 500,000 30% $32 per share $24 per share There were 400,000 shares of common stock outstanding at the start of the year; 240,000 were issued on March 1; and there was a 10% stock dividends on October 1. (You may assume that all convertible securities are dilutive; you do not have to worry about the order of considering them.) Required: For each step below, show your work! a. Compute basic earnings per share for 2014 b. Compute diluted earnings per share