At December 31, 2011, Hemington Company had 320,000 shares of common stock outstanding.  Hemington sold 80,000 shares on October 1, 2012.  Net income

for 2012 was $1,985,000; the income tax rate was 35%.  In addition, Hemington had the following debt and equity securities on its books at December 31, 2011.

a) 30,000 shares of $100 par, 8% cumulative preferred stock.

b) 25,000 shares of 10% convertible cumulative preferred stock, par $100, sold at 110.  Each share of preferred stock is convertible into three shares of common stock

c) $1,500,000 face value of 9% bonds sold at par

d) $2,500,000 face value of 7% convertible bonds sold to yield 8%.  Unamortized bond discount is $150,000 at December 31, 2011.  Each $1,000 bond is

      convertible into 22 shares of common stock.

Also, options to purchase 20,000 shares of common stock were issued May 1, 2012.  Exercise price is $20  per share; market value at date of option was $19;

ending market value on December 31, 2012, $25.

Instructions: For the year ended December 31, 2012, Compute basic and diluted EPS