Mayfield Corporation has net income of $210,000 for the year and a weighted-average number of common shares outstanding during the period of 100,000 shares. The tax rate is 35 percent. The company has three dilutive securities outstanding:

7 percent issue sold at 100 (total $1,000,000) in prior year and convertible into 20,000 common shares.

10 percent issue sold at 100 (total $1,000,000) on July 1st of the current year and convertible into 30,000 common shares.

1,000 options issued in prior year. Each option is exercisable for one share at $8. None has been exercised. The average market price of the stock during the current year was $20.

a. Compute diluted earnings per share