Taylor Company has 20,000 shares of common stock outstanding during all of 2017. It also has convertible outstanding at the end of 2017. These are:

1.) Convertible preferred stock, 1,000 shares of 6% $100 par that was issued on Jan. 2, 2017 for $105 per share. Each share is convertible into 6 shares of common stock. Dividends were declared on December 15, 2017. No preferred stock was converted.

2.) Convertible bonds, with a face value of $100,000 and interest rate of 8% were issued in 2016. Each 1,000 bond is convertible into 20 shares of common stock. No bonds have been converted.

Taylor had a net income of $100,000 for 2017 an their income tax rate is 30%.

Instructions: Compute basic and diluted earnings per share. Do not worry about the ranking order or dilutive securities. Please show computations.

*In U.S. dollars