(This question has been answered incorrectly twice on Chegg.)

Riggs Corporation has the following balance sheet information at December 31, 2016.

Current liabilities	$	800,000
Convertible bonds ($1,000 par, 5%)		2,000,000
Common stock ($1 par, 300,000 shares issued		300,000
Additional paid-in capital		2,100,000
Retained earnings		3,230,000
Treasury stock (43,000 shares)		(1,161,000	)
Total liabilities and shareholders equity	$	7,269,000

The convertible bonds were issued at par in 2014 and are convertible into Riggss common stock at a ratio of 15 shares of stock to 1 bond. In its December 31, 2016 annual report, Riggs reported 125,000 exercisable qualified stock options. Each option allows the holder to acquire one share of common stock for $19 per share. All of the options were outstanding at the end of 2017. On October 1, 2017, Riggs purchased 32,000 shares of treasury stock for $50 per share. The average market price of the common stock during 2017 was $50 per share, and the December 31, 2017, price was $56. Riggss net income for the year ended December 31, 2017, was $825,000, and its tax rate was 35%.

Required:

Compute Riggss basic EPS for the year ended December 31, 2017.

Compute Riggss diluted EPS for the year ended December 31, 2017. There are no antidilutive securities.