The Simon Corporation issued 10-year, $5,780,000 par, 7% callable convertible subordinated debentures on January 2, 2014. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 15:1, and in 2 years it will increase to 20:1. At the date of issue, the bonds were sold at 97. Bond discount is amortized on a straightline basis. Simons effective tax was 37%. Net income in 2014 was $7,635,000, and the company had 2,455,000 shares outstanding during the entire year.

Compute both basic and diluted earnings per share.