The information below pertains to Preston Company for 2021. Net income for the year $ 1,200,000 14% convertible bonds ($1,000 per bond), each bond is convertible into 40 shares of common stock 1,000,000 4% convertible, cumulative preferred stock, $100 par, each preferred share is convertible into 4 shares of common stock 3,000,000 Common stock, $10 par 4,000,000 Tax rate for 2021 30% Options were granted on July 1, 2020, to purchase 200,000 shares at $15 per share. No options were exercised during the fiscal year 2021 and the average market price per common stock was $20 for the year 2021. There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. Instructions: (a) Compute basic earnings per share for 2021. (b) Compute diluted earnings per share for 2021. Show stepwise computations