The ABC Corp. maintained in circulation during 2020 the following securities: 200,000 common shares ($ 2,000,000 of legal capital), 10,000 cumulative preferred shares, 8% ($ 500,000 of legal capital), and two exchangeable bond issues: 1) $ 1,000,000 at 10%, exchangeable at the rate of 40 common shares per bond (each bond is worth $ 1,000), 2) $3,000,000 at 8%, exchangeable for 16 shares each (each bonus is worth $ 1,000). In addition, during 2020, ABC granted a stock option plan to an executive, through which he can acquire 20,000 common shares at $ 25 / share. The year-end market value of these shares is $ 35 / share. The net income for 2020 was $ 800,000 and the tax rate was 30%. Additionally, a 20% stock dividend was issued on December 30, 2020. There are no accumulated dividends (in arrears) on the preferred shares. Determine the basic and diluted earnings per share computation