On January 1, 2024, Jaewoo Industries had outstanding 720,000 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, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $39.
• At December 31, 2024, there were23,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 23,000 shares of common stock at an exercise price of $36.
• The market price of the common stock at year-end was $54.
• During the year, the price of the common shares had averaged $46.
• Net income was $860,000. The tax rate for the year was 25%.

Required:

Compute basic and diluted EPS for the year ended December 31, 2024.