Stanley Department Stores reported net income of $863,000 for the year ended December 31, 2021. Additional Information:

Common shares outstanding at Jan. 1, 2021120,000

Incentive stock options (vested in 2020) outstanding throughout 202136,000

(Each option is exercisable for one common share at an exercise price of $26.00)

During the year, the market price of Stanleys common stock averaged $31.20 per share.

On Aug. 30, Stanley sold 15,000 common shares.

Stanleys only debt consisted of $42,000 of 10% short-term bank notes.

The companys income tax rate is 25%.

Required:

Compute Stanleys basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations)

basic --------/----------- =----------EPS

diluted--------/-----------=----------EPS