E15-18 EPS; shares issued; right issue; share options OLO15-6 through L015-9 Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2021. Additional Information: Ordinary shares outstanding at January 1, 2021 80,000 Incentive share options (vested in 2020) outstanding throughout 2021............ 24,000 (Each option is exercisable for one ordinary share at an exercise price of $37.50.) During the year, the market price of Stanley's ordinary shares averaged $45 per share. On August 30, Stanley sold 15,000 ordinary shares. On September 1, Stanley offered its existing shareholders the right to subscribe for one new share at $1.50 per share for each existing share held. The market price of Stanley's shares just before the exercise on October 1 was $2.00 per share. The shareholders exercised their rights in full on October 1. Stanley's only debt consisted of $50,000 of 10% short-term bank notes. The company's income tax rate is 20%. Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021.