DILUTED EARNINGS PER SHARE --- STOCK OPTIONS Kulkulcan Technology Co. provides the following data at December 31, 2015. Operating Revenue. $1,460,000 Operating expenses. $790,000 Income tax rate 35% Common stock outstanding during the entire year. 34,000 shares On January 1, 2015, there were options outstanding to purchase 9,000 shares of common stock at $20 per share. The average market price for the year was $26 per share. The balance sheet reports $510,000 of 7% nonconvertible bonds at December 31, 2015. (Interest expense is included in operating expenses.) Instructions: 1. Compute basic EPS for 2015. 2. Compute diluted EPS for 2015.