Presented below is information related to Reilly Company.

1.Net Income [includingincome from discontinued operations (net of tax) of $130,000]$420,000

2.Capital Structure (Partial Stockholders' Equity Section Information)

a.Cumulative 8% preferred stock, $100 par,6,000 shares issued andoutstanding$600,000

b.$10 par common stock, 84,000 shares outstanding on January 1.

On April 1^st, 40,000 shares were issued for cash.On October 1,

16,000 shares were purchased andretired.

c.Options to acquire 150,000 shares of common stock at an exercise

price of $40 per share were outstanding for the entire year.

3.Other Information

a.Average market price per share of common stock during entireyear$60

b.Income taxrate30%

REQUIRED:

Compute basic and diluted earnings per share for the current year. You must report both earnings per share amounts on each level of income (e.g., income from continuing operations, discontinued operations - net of tax and net income).