As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:

Date GrantedOptions GrantedShare Price(adjusted for the stock dividend)December 31, 201612,000$16December 31, 20177,000$25December 31, 201810,500$24

The market price of the common stock averaged $24 per share during 2018.

On July 12, 2016, Dow issued $900,000 of convertible 10% bonds at face value. Each $1,000 bond is convertible into 30 common shares (adjusted for the stock dividend).

Required:

Compute Dow's basic and diluted earnings per share for the year ended December 31, 2018.(Enter your answers in thousands.)