The following information was taken from the books and records of Myers, Inc.:

Net income$600,000

Capital structure:

a.Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible

into 50 shares of common stock at the present date and for the next

10 years.$300,000

b.$10 par common stock, 200,000 shares issued and outstanding

during the entire year. $2,000,000

c.Stock warrants outstanding to buy 16,000 shares of common stock

at $15 per share.

Other information:

a.Bonds converted during the year None

b.Income tax rate21%

c.Convertible debt was outstanding the entire year

d.Average market price per share of common stock during the year$30

e.Warrants were outstanding the entire year

f.Warrants exercised during the yearNone

Compute basic earnings per share.

Compute the diluted earnings per share