Stanley Department Stores reported net income of $765,000 for the year ended December 31, 2020. The companys income tax rate is 40%.

Additional Information:

a. Common shares outstanding at Jan. 1, 2020: 85,000 shares:

b. Incentive stock options (vested in 2019) outstanding throughout 2020: 24,000 shares (Each option is exercisable for one common share at an exercise price of $22.50). The options were exercised on September 1, 2020.

c. During the year, the market price of Stanleys common stock averaged $10 per share.

d. On Aug. 30 Stanley sold 15,000 common shares. e. On October 5 Stanley repurchased 10,000 common shares

f. On December 20, 2020, Stanley declared 10% common stock dividends g. Stanleys debts consisted of $50,000 of 10% convertible bonds which can be converted to 20,000 common shares and $68,000 of 12% short term notes. h. Stanley has 20,000 shares of 8% cumulative convertible preferred stock, $2 par value. Each share could be converted to 2 shares of common stock.

i. Stanly grants RSUs representing 10,000 shares of its $1 par common shares to certain key executives on January 1, 2020. The shares are subject to forfeiture if employment is terminated within four years

j. According to the agreement for the acquisition of Youngstown Company, additional 8,000 shares (already adjusted for the stock dividend) are to be issued to former Youngstown shareholders on December 31, 2021, if Youngstowns 2022 net income is at least $1.5 million. In 2020, Youngstowns net income was $1.6 million.

Required: calculate the basic EPS and diluted EPS for Stanley in 2020.