H.K Corporation had net income for the year of $520,000 and a weighted average number of common shares outstanding during the period of 225,000 shares. The company has a convertible bond issue outstanding. The bonds were issued four years ago at par ($3,000,000), carry a 7% interest rate, and are convertible into 40,000 shares of common stock. The company has a 40% tax rate. 

Calculate diluted earnings per share.