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Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2018...

Information from the financial statements of Ames Fabricators, Inc., included the following:
  

December 31
2018 2017
Common shares 100,000 100,000
Convertible preferred shares
(convertible into 34,000 shares of common)		 13,200 13,200
10% convertible bonds
(convertible into 20,000 shares of common)		 $ 1,000,000 $ 1,000,000


Ames’s net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018.

Required:

Compute basic and diluted earnings per share for the year ended December 31, 2018.

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