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 54,000 shares of common) 25,200 25,200 10% convertible bonds (convertible into 20,000 shares of common) $ 1,000,000 $ 1,000,000 Amess net income for the year ended December 31, 2018, is $720,000. 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.