V. Earnings per Share In 2020, Fondren Company issued, at par, 600 $1,000, 6% bonds. Each bond is convertible into 100 shares of common stock. Fondren had revenues of $300,000 and expenses other than interest and taxes of $120,000 for 2021. The tax rate is 20%. Throughout 2021, 12,000 shares of common stock were outstanding and 5,000 shares of 8% $50 par cumulative preferred stock. No preferred stock dividends were declared. None of the bonds was converted in 2021. Instructions: (1) Compute basic earnings per share for 2021. (2) Compute diluted earnings per share for 2021.