On January 1, 2021, Tonge Industries had outstanding 640,000 common shares ($1 par) that originally sold for $25 per share, and 8,000 shares of 10% cumulative preferred stock ($100 par), convertible into 80,000 common shares. On October 1, 2021, Tonge sold and issued an additional 12,000 shares of common stock at $40. At December 31, 2021, there were 28,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 28,000 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 $780,000. The tax rate for the year was 25%.

PLEASE SHOW FORMULAS SO I CAN LEARN

Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in thousands.)

Numerator Denominator Earnings per share Basic Diluted