Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2018. Additional Information: 80,000 24,000 Common shares outstanding at Jan. 1, 2018 Incentive stock options (vested in 2017) outstanding throughout 2018 (Each option is exercisable for one common share at an exercise price of $37.50) During the year, the market price of Stanley's common stock averaged $45 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $50,000 of 10% short term bank notes. The company's income tax rate is 40%. Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2018