The following information is relevant to the computation of Pharm Co.'s earnings per share to be disclosed on Pharm's income statement for the year ending December 31: Net income for Year 2 is $800,000. $4,000,000 face value 10-year convertible bonds outstanding on January 1. The bonds were issued four years ago at a premium that is being amortized in the amount of $28,000 per year. The stated rate of interest on the bonds is 8%, and the bonds were issued to yield 7%. Each $1,000 bond is convertible into 70 shares of Pharm's common stock. Preferred stock, $10 par, 4% cumulative, 15,000 shares issued and outstanding. No dividend is declared for Year 2. Pharm's corporate income tax rate is 20%. What amount should be used as the numerator in the fraction used to compute Pharm's diluted earnings per share assuming that the bonds are dilutive securities