The Windsor Corporation issued 10-year, $5,470,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 13:1, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Windsors effective tax was 35%. Net income in 2017 was $9,350,000, and the company had 1,820,000 shares outstanding during the entire year.

(a) Compute both basic and diluted earnings per share.

Basic earnings per share $ Diluted earnings per share $