James, Inc., reported earnings of $165,000 for the year, and at the end of the year, had the following securities outstanding:

1. 60,000 shares of common stock. (The year-end share price was $25 per share.)
2.  Employee stock options for the purchase of 10,000 common shares at an exercise price of $22 per share. (The options are fully vested.)

(a) Calculate the basic earnings per share for James, Inc. 

(b) Calculate the diluted earnings per share for James, Inc.