$8$ East Carbon Company had $100,000$ shares of common stock outstanding throughout the year. In addition, as of January $1,$ the company had issued $10,000$ convertible preferred shares $(5\%,$$$100$ par$).$ The company has no other potentially dilutive securities$.$ The preferred shares were NOT converted during the year. Net income for the year was $$200,000.$

Compute DILUTED earnings per share, assuming that each preferred share was convertible into four shares of common stock.

$$1\mathrm{.}76$

$$1\mathrm{.}43$

$$333$