Question 2 (12 points) The following data relate to Schroeder Ltd. for the calendar year 2021: Net income (30% tax rate) $3,250,000 Average number of common shares outstanding during 2021 1,200,000 shares 8%, cumulative convertible preferred shares: convertible into 90,000 common shares $1,800,000 6% convertible bonds; convertible into 60,000 common shares $2,000,000 Stock options, exercisable at $30 per share 105,000 shares All the convertible securities and stock options were outstanding all year. The average market price of the common shares in 2021 was $35. Required: Compute the basic and diluted earnings per share for 2021