On January 1, 2021, Tonge Industries had outstanding 600,000 common shares ($1 par) that originally sold for $30 per share, and 6,000 shares of 10% cumulative preferred stock ($100 par), convertible into 60,000 common shares. On October 1, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $36. At December 31, 2021, there were 22,000 incentive stock options outstanding, issued in 2020, 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 $740,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands (i.e., 100,000 should be entered as 100). Round "Earnings per share" answers to 2 decimal places.)

Numerator Denominator 11 Earnings per share 1.13 Basic $ 6807 604 11 $ $ $ Diluted 7407 667 X II $ 1.11