On January 1, 2018, United Airlines had 13,000 shares of common stock outstanding and 5,000 shares of 6% $100 par, cumulative preferred stock outstanding. It also had stock options giving key personnel the option to buy 7,000 common shares at $30 each. Net income for 2018 was 41,000. Tax rate 40%. The average market price during 2018 was $40 per common share.

Compute the basic EPS for 2018 for United Airlines corp.

.65

.79

.85

1.77

Compute the diluted EPS for 2018 United Airlines orp.

2.78

1.83

4.81

.75