Information relating to the capital structure of Roninger Corporation at December 31, 2007 and 2008, is as follows:

Roninger Corporation paid dividends of $5 per share on its preferred stock. The preferred stock is convertible into 40,000 shares of common stock. The 7.5% convertible bonds are convertible into a total of 35,000 shares of common stock. The net income for the year ended December 31, 2008, is $640,000. Assume that the income tax rate is 30%. Compute basic and diluted EPS for the year ended December 31,2008.

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Outstanding Common stock . Convertible preferred stock noncumulative (issued in 2006) 7.5% convertible bonds (issued in 2007) Stock options to purchase 20,000 shares at $15. Market price of Roninger 20,000 shares 18,000 shares $1.200,000 stock was $22 at December 3, 2008, and averaged $20 during the year