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Question 4 - (25 points): On January 1, 2018, Torque Industries common shares (par $1) that originally sold for $20 per share, an cumulative preferred stock (par $100), convertible into 40 2018, 1,000 shares of the convertible preferred stock orque Industries had outstanding 440,000 for $20 per share, and 4,000 shares of 10% of the convertible preferred stock were converted into com vertible into 40,000 common shares. On Aprill, On October 1, 2018, Torque sold and issued an additional $33. At December 31, 2018, there were incentive stock op exercisable after one year for 20.000 shares of common stoc market price of the common stock at year-end was $48. Dunn common shares averaged $40. ued an additional 16,000 shares of common stock at ative stock options outstanding, issued in 2017, and es of common stock at an exercise price of $30. The year-end was $48. During the year the price of the Net income was $650,000 for 2018 and that year's tax rate was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2018