On December 31, 2019, Red Inc. had 600,000 shares of common stock, 3,000 shares of 8%, noncumulative, nonconvertible preferred stock, $100 par (Preferred A), and 5,000 shares of 10% cumulative preferred stock, $100 par, convertible into 50,000 common shares (Preferred B) issued and outstanding.Red Inc. issued a 5% common stock dividend on May 15, 2020. Red Inc. paid cash dividends of $400,000, $20,000 and $40,000 to common, Preferred A and Preferred B shareholders, respectively, on December 15, 2020.On February 28, 2020, Red Inc. sold 60,000 common shares.Red Inc. repurchased as treasury stock 2,000 shares on July 1, 2020.Tri has $300,000 in bonds payable, 8%, convertible into 30,000 shares of common stock.The bonds were issued at par value in 2019.The remainder of its bonds payable are not convertible.As a part of a 2020 agreement for the acquisition of Mike's Bikes, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Mike's shareholders on December 31, 2022, if the subsidiary Mike's 2021 net income is at least $600,000. In 2020, Mike's net income was $680,000. Under its restricted stock unit plan, the company on January 1, 2020, granted restricted stock units (RSUs) representing 50,000 of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $15.00 per share on the grant date. Assume total compensation expense for these RSUs is $720,000 and compensation expense for 2020 was $240,000.Red Inc. also offers its employees a stock option plan. On January 1, 2020, under this plan, Red Inc. granted options to certain executives. The options permit holders to acquire 110,000 of Red Inc. $1 par common shares for $18 within the next five years, but not before January 1, 2023 when the options vest. The market price of the shares on the date of grant is $15 per share. The fair value of the 110,000 options, estimated by an appropriate option pricing model, is $6 per option.Assume total compensation expense for these stock options is $600,000 and compensation expense for 2020 was $200,000.Red Inc.'snet income for the year ended December 31, 2020, was $2,100,000.

The income tax rate is 20%. Average share price for common shares in 2020 was $22.Compute Red Inc.'s basic and diluted earnings per share for the year ended December 31, 2020.