The tollowing information applies to the questions displayed below) Penny Arcades, Inc., is trying to dedde between the following two alternatives to finance its new $21 million gaming center: a. Issue $21 million of 5% bonds ot face amount. b. Issue 1 million shares of common stock for $21 per share. value: 13.00 points Required information Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each altemative. (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places. Round your "Earnings per Share" to 2 decimal places.) income$ Interest expense bonds only) Income before tax Income tax expense (40%) Net income Number of shares Earnings per share 2,600,000 3,600,000 2. Which alternative results in the highest earnings per share? O Issue bonds O Issue stock