Information regarding Zhi Ltd:

- Common shares outstanding on December 31, 20X1: 100,000. The company had issued 40,000 shares under a contingent share agreement on 1 December 20X2. It had also issued 50,000 common shares when preferred shares converted on 30 September \(20 \mathrm{X} 2\).

- The average price of common shares was \(\$ 14\).

- The 40,000 shares issued under a contingent share agreement were issued under an agreement with a previously acquired company. The agreement stated that if a lawsuit that had been filed against this acquired company (before it was acquired by Zhi) were to be dismissed in court action, then 40,000 shares would be issued. The court dismissed the lawsuit in late November, and shares were issued on 1 December.

- A second contingent share agreement related to profit levels of a target company. This contingent share agreement calls for an additional 50,000 common shares to be issued in \(20 \times 5\) if \(20 \times 2,20 \times 3\), and \(20 \times 4\) earnings from the target company each reach a certain level. This level was attained in 20X2.

- Preferred shares, \(\$ 3\), cumulative: these shares were convertible \(5-\) for-1. At the beginning of the year, 30,000 shares were outstanding and 10,000 shares converted on September \(30,20 \mathrm{X} 2\). The dividend is paid quarterly.

- Zhi Ltd. has \(\$ 3,000,000\) par value convertible bonds outstanding. There is \(\$ 104,000\) in a common stock conversion rights account with respect to the bonds. The bonds are convertible into 50,000 common shares. Interest paid on the bond was \(\$ 180,000\), and there was discount amortization of \(\$ 17,000\). The bonds are convertible at any time before their maturity date in \(20 \times 20\).

- Net earnings in \(20 \mathrm{X} 2, \$ 602,000\).

- The tax rate was \(40 \%\).

Required:

Calculate basic and diluted EPS for \(20 \mathrm{X} 2\).