Given the following data, compute diluted earnings per share:

Common stock (500,000 shares at $4.00 par value).................................	$2,000,000
Convertible debentures at 7 percent (6,000 bonds  at $1,000 each; convertible into 20 shares per bond).........................................................	6,000,000
Retained earnings.....................................................................................	8,000,000
Earnings before interest and taxes............................................................	3,420,000
Interest......................................................................................................	420,000
Earnings before taxes................................................................................	3,000,000
Earnings after taxes (50%)........................................................................	$1,500,000