B. During 2017, Stewart, Inc. had the following convertible securities outstanding:

- $100,000 of 8% convertible bonds. Each $1,000 bond is convertible into 32 shares of common stock

- $150,000 of 11%, $100 par, cumulative preferred stock. Each share is convertible into 5 shares of common stock

Stewart, Inc. has an income tax rate of 40%. Its reported net income for 2017 was $150,000, and it had 24,000 shares of common stock outstanding all year.

Instructions: Calculate basic and diluted earnings per share for Stewart. You may omit ranking and impact of the dilutive securities. You must show computations.