VI. Earnings Per Share Soames Company's net income for 2021 is $260,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2020, each exercisable for one share of $10 par common stock at $42 per share. None has been exercised. 20,000 shares of $10 par common stock and 2,000 shares of $100 par 6% noncumulative preferred stock were outstanding during 2021. No preferred stock dividends were declared in 2021. The average market price of Soames's stock during 2021 was $60. Instructions: (1) Compute basic earnings per share for 2021. (2) Compute diluted earnings per share for 2021.