Pacific Sailing Co.'s (PSC) net income in 2020 was $600,000, and its tax rate was 25%. The company had 150,000 shares of common stock outstanding throughout 2020.

On January 1, 2020, PSC issued 10-year, $1,200,000 face value, 7% bonds, at par. Each $1,000 bond is convertible into 5 shares of PSC common stock. None of the bonds were converted in 2020.

Compute diluted earnings per share for 2020.