The following data for Garrison Inc. for 2019 is available:

Net Income...........................................................................................$1,800,000

Transactions in Common Shares

1/1/19 Beginning number of shares outstanding 600,000

3/1/19 Purchase of treasury shares 50,000

6/1/19 15% stock dividend

11/1/19 Issuance of shares for cash 80,000

Throughout 2019, the company also had 10,000 shares of 6%, $50 par value cumulative convertible preferred stock issued and outstanding. Each share of preferred stock is convertible into 10 shares of common stock (adjusted for the stock dividend).

1. Compute the basic earnings per share for 2019.

2. Compute the diluted earnings per share for 2019.