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

December 31

2018

2017

Common shares

100,000

100,000

Convertible preferred shares

(convertible into 62,000 shares of common)

30,000

30,000

10% convertible bonds

(convertible into 20,000 shares of common)

$

1,000,000

$

1,000,000

Ames's net income for the year ended December 31, 2018, is $800,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2018.(Enter your answers in thousands.)