Computing EPS: Convertible Preferred with Partial Conversion Bridgeman Company reported the following data for the current year. - Net income, $2,220,000. ' Common shares outstanding at the beginning of the year, 800,000 . ' Nonconvertible cumulative preferred stock, \$100 par, \$8 dividend per share per year, 100,000 shares outstanding all year. -Issued 200,000 shares of common stock on October 1. Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 50,000 shares outstanding at the beginning of the year. On March 31,20,000 shares of preferred stock converted to 40,000 common shares. - For both preferred stock issues, assume dividends are paid for the time they are held. a. Compute basic EPS. b. Compute diluted EPS