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On December $31,2020,$ Dow Steel Corporation had $650,000$ shares of common stock and $305,000$ shares of $9\%,$ noncumulative,

nonconvertible preferred stock issued and outstanding. Dow issued a $5\%$ common stock dividend on May $15$ and paid cash dividends

of $$450,000$ and $$74,000$ to common and preferred shareholders, respectively, on December $15,2021.$

On February $28,2021,$ Dow sold $64,000$ common shares. In keeping with its long$-$term share repurchase plan, $7,000$ shares were

retired on July $1.$ Dow's net income for the year ended December $31,2021,$ was $$2,350,000.$ The income tax rate is $25\%.$ Also, as a part

of a $2020$ agreement for the acquisition of Merrill Cable Company, another $26,000$ shares $($already adjusted for the stock dividend$)$ are

to be issued to former Merrill shareholders on December $31,2022,$ if Merrill's $2022$ net income is at least $$550,000.$ In $2021,$ Merrill's

net income was $$680,000.$

As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December $31$ of the current

and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to

market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted

and common share prices follows:

The market price of the common stock averaged $$24$ per share during $2021.$

On July $12,2019,$ Dow issued $$900,000$ of convertible $8\%$ bonds at face value. Each $$1,000$ bond is convertible into $30$ common

shares $($adjusted for the stock dividend$).$

Required:

Compute Dow's basic and diluted earnings per share for the year ended December $31,2021.($Enter your answers in thousands.

Round "Earnings per share" answers to $2$ decimal places. Do not round intermediate calculations$)$

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