Metro, Inc. had 50,000 shares of common stock outstanding and 3,000 shares of 7%, $50 par, cumulative preferred stock (non-convertible) at January 1, 20x1. On March 31, 20x1, an additional 12,000 shares were sold for $50. On May 31, Metro purchased 2,000 shares of common stock on the open market as treasury stock paying $40 per share. Metro also had $600,000 of 5% convertible bonds outstanding throughout the year. The bonds are convertible into 25,000 shares of common stock. Net income for the year was $150,000. The tax rate is 40%

Compute basic and diluted earnings per share for the year ended December 31, 20x1.