Colselo has $200,000$ common shares outstanding for the year and net income of $$400,000.$ It has issued options to acquire $10,000$ shares of common stock and has $20,000$ shares of $$100,6\%$ cumulative nonconvertible preferred stock, both of which were outstanding for the entire year. The exercise price for the options is $$20$ per share and the average market price during the year is $$15$ per share. Compute basic and diluted EPS.

Group of answer choices

basic EPS $$1\mathrm{.}40$; diluted EPS $$1\mathrm{.}40$

basic EPS $$1\mathrm{.}40$; diluted EPS $$1\mathrm{.}90$

basic EPS $$2\mathrm{.}00$; diluted EPS $$1\mathrm{.}33$

basic EPS $$2\mathrm{.}00$; diluted EPS $$1\mathrm{.}90$