On December 31, 2020, DW Steel Corporation had 600,000 ordinary shares and 300,000 8%, noncumulative, nonconvertible preference shares issued and outstanding. DW issued a 4% bonus issue of ordinary shares on May 15 and paid cash dividends of $400,000 and $75,000 ordinary and preference shareholders, respectively, on December 15, 2021. On February 28, 2021, DW sold 60,000 ordinary shares. Also, as a part of a 2020 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the bonus issue) are to be issued to former Merrill shareholders on December 31, 2022, if Merrill's 2022 net income is at least $500,000. In 2021, Merrill's net income was $630,000. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. DW's net income for the year ended December 31, 2021, was $2,100,000. The income tax rate is 20%. As part of an incentive compensation plan, DW granted incentive share options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one ordinary share at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and ordinary share prices follows: Date Granted Options Granted Share Price (adjusted for the bonus issue) December 31, 2019 8,000 $ 24 December 31, 2020 3.000 $ 33 December 31, 2021 6,500 $ 32 The market price of the ordinary shares averaged $32 per share during 2021. On July 12, 2019, DW issued $800,000 of convertible bonds. Each $1,000 bond is convertible into 30 ordinary shares (adjusted for the bonus issue). On January 1, 2021, the unamortized balance of the debt component was $761,570. The effective interest rate was 12%. Required: Compute DW's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands.) Denominator Numerator 1 $ 2,025 / Earnings per share $ 3.00 675 Dw's basic Dw's diluted