Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2018. Additional Information: 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%. 80,000 24,000 Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2018