The Marilyn Company had 20,000 shares of common stock outstanding beginning 2016. Marilyn issued 6,000 additional common shares at the beginning of April. They also had 2,500 shares of 6%,$100 par preferred stock that was issued in 2012 for $110 per share. Each share of preferred is convertible into five shares of common. The \$5 per share common and the annual preferred dividends have been declared and paid for the current year. At the end of December 2016. Marilyn also had outstanding $300,000 in $% tenyear convertible debentures that were sold at 90 in 2012 . Each bond is convertible into fifteen shares of common, and any discounts or premiums are amortized using the straight-line method. In addition, Marilyn has outstanding at the end of the fiscal year options to purchase 5,000 shares of common stock at $10 per share. In 2016, the average price of the common stock was $25 and the ending price was $35. The company's 2016 net income is $100,000 and its tax rate is 40%. Compute basic and diluted EPS for Marilyn in 2016 according to GAAP. Diluted EPS Calculation: (Show how each dilutive security affects the EPS ratio, step by step)