Please show step by step solution:

Information:

$200,000$ common shares outstanding

$20,000$ convertible preferred shares $($convertible into $51,282$ common shares$)$

$$ $$2,000,000$ convertible bonds with $$100,000$ interest expense $($convertible into $40,000$ common shares$)$

$$ Preferred dividend of $$5$ per share declared

$$ Net income is $$500,000$

$$ Tax rate is $40\%$

Required: Calculate Basic EPS and Diluted EPS