use the income statement below to answer the selected questions 1 Please use the income stateme Luther Corporation Consolidated Income Statement Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 5783 Cost of sales -500.2 -481.9 Gross profit 109.9 96.4 Selling general, and administrative expenses -40.5 -39.0 Research and development -24.6 -22.8 Depreciation and amortization -3.6 -3.3 Operating income 41.2 31.3 Other income Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) -25.1 -15.8 Pretax income 16.1 15.5 Taxes -5.5 -5.3 Net income 10.6 10.2 $16 $15 Price per share Sharing outstanding (millions) Stock options outstanding (millions) 10.3 8.0 0.4 0.1 63.6 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 533.1 L For the year ending December 31, 2006, (a) what is the Luther's earnings per share? (b) Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2006, what are the Luther's diluted earnings per share? (c) What will be the effect on the income statement if a firm buys a new processing plant through a new loan