Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016:

Common shares outstanding throughout the year 100 million

Convertible preferred shares (convertible into 20 million shares of common) 40 million

Convertible 10% bonds (convertible into 18.0 million shares of common) $ 2,100 million

Henderson-Niles net income for the year ended December 31, 2016, is $820 million. The income tax rate is 40%. Henderson-Niles paid dividends of $3 per share on its preferred stock during 2016. Required: Compute basic and diluted earnings per share for the year ended December 31, 2016.