The following transactions have also occurred at Sunland: 1. Options were granted by the company in 2018 to purchase 1,020,000 shares at $15 per share. Although no options were exercised during 2020, the average price per common share during fiscal year 2020 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 60 shares per $1,000 bond. It is exercisable after five years and was issued in 2019. Ignore any requirement to record the bonds' debt and equity components separately. 3. The $4.25 preferred shares were issued in 2018. 4. There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2020. 5. The 1.0 million common shares were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1.3 million, and the average income tax rate was 30%. Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $ Calculate basic earnings per share for 2020 . (Round answer to 2 decimal places, e.g. 15.25.) Calculate the after-tax interest paid on the 7% bonds. After-tax interest on bonds converted $ Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Rank the potentially dilutive securities from most dilutive to least dilutive. 7% Bonds Options Calculate diluted earnings per share for 2020 . (Round earnings per share to 2 decimal places, e.g. 15.25.)