During2020,Masefield,Inc.had the following convertible securities outstanding:

$200,000 of 6% convertible bonds. Each $1,000 bond is convertible into 30 shares of common stock.

$100,000 of 10%, $50 par, cumulative preferred stock. Each share is convertible into 4 shares of common stock.

Masefield,Inc.has an income tax rate of 30%. Its reported net income for 2020 was $210,000, and it had 26,000 shares of common stock outstanding all year.

Instructions:

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