Company Jude had net income for 2016 of $800,000 . The average number of common shares outstanding for the period was 200,000 shares. On Jan 1, 2016 Jude granted 5,000 stock options, and each option entitled the holder to purchase shares of common stock at a price of $10 per share. The average market price of the common stock during the year was $16. What should Jude report for diluted earnings per share for the year ended December 31, 2016 using the treasury stock method?

Please show workings thank you