Ivanhoe Unlimited is calculating earnings per share for inclusion in its 2020 annual report to shareholders.

The following information is available:

2020 net income: $125,000

Common shares outstanding at January 1, 2020 and throughout the year: 100,000

10,000 employee stock options with an exercise price of $30 per share have been outstanding since December 2019. The average market price of Ivanhoes stock for 2020 is $48 per share.

Required:

Compute Ivanhoes basic and diluted earnings per share for 2020.