Response to the following problem:
Given the following year-end information, compute Green Corporation's basic and diluted earnings per share.
• Net income, $5,000.
• The income tax rate, 30%.
• 1,000 shares of common stock were outstanding the entire year.
• 200 shares of 10%, $50 par (and issuance price) convertible preferred stock were outstanding the entire year. $1,000 dividends were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.