I. Stan Corp. provides the following data for 20x1.

Transactions in common stock:

1/1, beginning 300,000 shares

4/1, issuance 100,000 shares

8% $100 par nonconvertible cumulative preferred stock $100,000

Issued at par

6% $100 par convertible cumulative preferred stock $200,000

Issued at $105

Convertible into 20,000 shares

Stock options 60,000 shares

Option price $25

Average market price $35

Year-end market price $40

The net income for 20x1 is $2,300,000. The companys tax rate is 30 percent. No conversion or options were exercised during 20x1.

Compute basic and diluted earnings per share.