On January 1, 2018, Tonge Industries had outstanding 560,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2018, Tonge sold and issued an additional 16,000 shares of common stock at $32. At December 31, 2018, there were 20,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 20,000 shares of common stock at an exercise price of $40. The market price of the common stock at year-end was $58. During the year, the price of the common shares had averaged $50. Net income was $700,000. The tax rate for the year was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.) Numerator Denominator Earnings per share Basic $ 660,000 560,000 X = $ 1.18 Diluted $ 700,000 X/ 604,000 X $ 1.16 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted