On December 31, 2020, Ignatius Corporation had 7 million shares of common stock and 600,000 shares of 6% cumulative preferred stock (par $100). February 28, 2021: purchased an 600,000 shares of common stock as treasury stock for $50 per share September 30, 2021: sold 300,000 treasury shares for $60 per share

Net income for 2021 was $900,000. The tax rate for the year was 25%.

Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 1,000,000 common shares at $60. The market price of the common shares averaged $75 during 2021.

Required: Compute basic and diluted EPS (rounded to 2 decimal places) for the year ended December 31, 2021. Show your computations for both the numerator and denominator for both.