The information below pertains to Baker Co. for 2017.

Net income 2017	$1,200,000
8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock	$2,000,000
6% convertible, non-cumulative, preferred stock, $100 par value, each share is convertible into 3 shares of common stock	$4,000,000
Common stock, $10 par value	$6,000,000
Tax rate for 2017	40%
Average market share price of common stock for 2017	$25 per share

The company did have common stock options (granted last year) to purchase 75,000 shares of common stock at a price of $20 per share.

During the year, the following transactions took place related to equity:

May 1 - Issued 50,000 shares of common stock for $28 per share

June 1 Declared a 4% stock dividend effective on July1.

Compute basic EPS for 2017