Information from the financial statements of Ames Fabricators, Inc., included the following:

	December 31
		2016			2015
Common shares		100,000			100,000
Convertible preferred shares (convertible into 60,000 shares of common)		28,800			28,800
10% convertible bonds (convertible into 30,000 shares of common)	$	1,000,000		$	1,000,000

Amess net income for the year ended December 31, 2016, is $780,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2016.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in thousands.)