The Diluent Corp. maintained in circulation during 2020 the following values: 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, Dilujador 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. Show all calculations. You will not receive partial points if you only write the final answer.