Information from the financial statements of ames fabricators, inc., included the following: december 31 2018 2017 common shares 100,000 100,000 convertible preferred shares (convertible into 32,000 shares of common) 12,000 12,000 10% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 ames’s net income for the year ended december 31, 2018, is $500,000. the income tax rate is 40%. ames paid dividends of $5 per share on its preferred stock during 2018. required: compute basic and diluted earnings per share for the year ended december 31, 2018.