Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018:

Common shares outstanding throughout the year .........................................100 million

Convertible preferred shares (convertible into 32 million shares of common) .........60 million

Convertible 10% bonds (convertible into 13.5 million shares of common) ..........$900 million

Henderson-Niles's net income for the year ended December 31, 2018, is $520 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2018.