Assume that the following data relate to Rosen, Inc. for the year 2017:

Net income (40% tax rate) $5,300,000

Average common shares outstanding 2017 1,000,000 shares

8% cumulative convertible preferred stock:

Convertible into 90,000 shares of common $2,000,000

6% convertible bonds; convertible into 75,000 shares of common $4,000,000

Stock options: Exercisable at the option price of $30 per share;

Average market price in 2017, $36 48,000 shares

1.Compute basic earnings per share. 2.Compute diluted earnings per share.