TheNovakCorporation issued 10-year, $4,390,000par,8% callable convertible subordinated debentures on January 2, 2020. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is14:1, and in 2 years it will increase to19:1. At the date of issue, the bonds were sold at99. Bond discount is amortized on a straight-line basis.Novak's effective tax was20%. Net income in 2020 was $9,500,000, and the company had1,970,000shares outstanding during the entire year.

Compute both basic and diluted earnings per share.