At the beginning of 2017, Vincia Hill Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock. During 2017, Vincia Hill had revenues of $160,000 and expenses other than interest and taxes of $100,000. Assume that the tax rate is 35%. None of the bonds was converted or redeemed.

Compute diluted earnings per share for 2017