Information concerning the capital structure of Sunland Company is as follows:

December 31,

2021 2020

Common stock 144000 shares 144000 shares

Convertible preferred stock 15800 shares 15800 shares

7% convertible bonds $2400000 $2400000

During 2021, Sunland paid dividends of $0.90 per share on its common stock and $3 per share on its preferred stock. The preferred stock is convertible into 31000 shares of common stock. The 7% convertible bonds are convertible into 74800 shares of common stock. The net income for the year ended December 31, 2021, was $400000. Assume that the income tax rate was 32%.

What should be the diluted earnings per share for the year ended December 31, 2021, rounded to the nearest penny?

i. $2.06

ii. $1.83

iii. $2.35

iv. $2.19