Amess net income for the year ended December 31, 2013, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2013.

Amess net income for the year ended December 31, 2013, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2013. Compute basic and diluted earnings per share for the year ended December 31, 2013.

	December 31
		2013			2012
Common shares		100,000			100,000
Convertible preferred shares (convertible into 32,000 shares of common)		12,000			12,000
10% convertible bonds (convertible into 30,000 shares of common)	$	1,000,000		$	1,000,000