The information below pertains to Indigo Company for 2018. Net income for the year 7% convertible bonds issued at par ($1,000 per bond), each bond is convertible into $1,230,000 . 30 shares of common stock 1,990,000 7% convertible, cumulative preferred stock, $100 par value, each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2018 4,110,000 6,270,000 40% $25 per share Average market price of common stock Common stock, $10 par value, outstanding on 1/1/2018 was 627,000 shares. On 3/1, 200,000 shares of common stock were sold for cash; on 5/1, a 20% stock dividends were issued; on 10/1, 100,000 shares of common stock were purchased back and held as treasury stock. The company also has common stock options (granted in a prior year) to purchase 68,200 shares of common stock at $20 per share. All conversion ratios between dilutive securities and common stock are adjusted for stock dvidends. Required: 1. Compute basic earnings per share for 2018. 2. Compute diluted earnings per share for 2018