On January 1, 2021, Tonge Industries had outstanding 440,000 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, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2021, there were 20,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 20,000 shares of common stock at an exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net Income was $650,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021 (Round "Earnings per shore" answers to 2 decimal places Enter your answers in thousands.) Basic Diluted Numer $ 650,000/ $ 650,000 Denominato 489,000 489.000 Earnings per share $ 137 5 133