Prior to 2014, Barkley Company issued 50,000 shares of 6% convertible, cumulative preferred stock with par value of $100. Each share is convertible into 3 shares of common stock. Barkley's net income for 2014 was $1,800,000. There were 800,000 shares outstanding as of Dec 31, 2014. There were no changes in the number of common or preferred shares oustanding throughout the year.

Compute the diluted earnings per share for 2014 (If-converted method).