During year 5, black corp had 200,000 common shares outstanding for the full year. Black corp reported $800,000 net income for year 5. The tax rate is 40%.

Market prices of the common shares during year 5 were:

Jan 1: 77$

Year average: 80$

December 31: 82$

During year 5 there were:

-40,000 outstanding stock options to buy common shares at 40$ a share

-$2,000,000 of 8% convertible bonds issued at par. Each $1,000 bond is convertible into 20 common shares

-20,000 preferred shares each paying a $7 dividend and each convertible to three common shares

Calculate basic and diluted earnings per share for year 5.