At December 31, 2016, Med X corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800 of 10% bonds convertible into 27,000 common shares.

MedXs net income for the year ended December 31, 3016, is $1,040,000. The income tax rate is 40%. Medx paid dividends of $2 per share on its preferred stock during 2016.

Compute basic and diluted earnings per share for the year ended December 31, 2016, considering possible antidilutive effects.