Information concerning the capital structure of the Petrock Corporation is as follows:

During 2008, Petrock paid dividends of \($1\) per share on its common stock and \($2.40\) per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock.
The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 2008 was \($285,000\), and the company’s income tax rate was 40%.

Required:
1. What was basic EPS for 2008, rounded to the nearest penny?
2. What was diluted EPS for 2008, rounded to the nearest penny?

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December 31 2007 Common stock 90,000 shares Convertible preferred stock 10,000 shares 8% convertible bonds $1,000,000 2008 90,000 shares 10,000 shares $1,000,000