On December 31, 2011, JME Corporation had 350,000 shares of common stock outstanding. On September 1, 2012, an additional 150,000 shares of common stock were issued. In addition, JME had $10 million of 8% convertible bonds outstanding at December 31, 2011, which are convertible into 200,000 shares of common stock. Net income for 2012 was $3 million. Assuming an income tax rate of 40%, what amount should be reported as the diluted earnings per share for 2012?