On January 1, 2018, Tonge Industries had outstanding 620,000 common shares ($1 par) that originally sold for $20 per share, and 7,000 shares of 10% cumulative preferred stock ($100 par), convertible into 70,000 common shares. On October 1, 2018, Tonge sold and issued an additional 20,000 shares of common stock at $38. At December 31, 2018, there were 27,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 27,000 shares of common stock at an exercise price of $35. The market price of the common stock at year-end was $53. During the year, the price of the common shares had averaged $45. Net income was $760,000. 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 1 Denominator - Earnings per share 11 Basic Diluted i =