On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally sold for $25 per share, and 5,000 shares of 10% cumulative preferred stock ($100 par), convertible into 50,000 common shares. On October 1, 2018, Tonge sold and issued an additional 12,000 shares of common stock at $37. At December 31, 2018, there were 22.000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 22.000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44. Net income was $840,000. 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.) Answer is complete but not entirely correct. Numerator Earnings per share $ Basic Diluted 1.12 Denominator 703,000 X = 760,615 X 790,000 X 840,000 $ $ $ $ 1.10