The following information pertains to Petit Four Inc.

Net income $548,000

5% Convertible bonds issued at par $225,000

Weighted-average shares outstanding 188,000

Tax rate 25%

Each $1,000 bond is convertible into 20 shares of common stock at the option of the bondholder. The bonds were outstanding all year. The company computes diluted EPS using the if-converted method

Calculate basic and diluted EPS for the year.

Basic EPS Diluted EPS

Group of answer choices

$2.91 $2.80

$2.19 $2.19

$2.91 $2.91

$2.91 $2.89