Given the following year-end information, compute Greenwood Corporation's basic and diluted earnings per share.

• Net income, $15,000

• The income tax rate, 30%

• 4,000 shares of common stock were outstanding the entire year.

• 500 shares of 10%, $50 par (and issuance price) convertible preferred stock were outstanding the entire year.

Dividends of $2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.