Refer to Practice 18–17. Assume that the company issued 25,000 new shares of common stock on June 1 and that the company issued a 2-for-1 stock split on December 1. Compute

(1) Basic EPS and

(2) Diluted EPS. (Note: The shares in the option, convertible preferred, and convertible bond descriptions are in terms of January 1 shares. The number of shares in each case—and the exercise price in the case of the options— would be adjusted to reflect the December 1 2-for-1 split. The ending stock price of $18 for the year does not reflect the 2-for-1 stock split.)