Ok....someone please help! I've been working on this problem for awhile and I think I've messed up somewhere...

20,000 common o/s in 2005.
Conv Preferred Stock; 2000 shares, 9.5%, $50 par issued 2/2/5 @ $60. Each share convertible into 3 shares common. Dividends declared. No conversions to date.
Conv bond; $200,000 face, 5.7% issued at par in 2004. Each $1000 bond is convertible into 22 shares common. None have been converted.
Net Income = $69,500 in 2005
30% tax rate.

This is what I came up with:

1. Basic EPS = 69,500 - 190/20,000 = 3.47

2, Diluted EPS = 69,500 -9500+7980/20,000 +6000 +4400
= 67,980/30,400
=2.24

What have I done wrong? I don't think there should be that much of a difference between the basic and the diluted EPS......any help is much appreciated, Thanks!