A20-16 Basic EPS (LO 20-2) The Duckworth Ltd. 20X5 financial statements include the following: Statement of comprehensive income Year ended 31 December 20X5 Earnings from continuing operations Discontinued operations (net of tax) Net earnings and comprehensive income $3,316,000 442,000 $3,758,000 Statement of financial position 31 December 20X5 Bonds payable, 7%, nonconvertible Preferred shares, no-par value, $0.92, nonconvertible, noncumulative, outstanding during year, 520,000 shares Common shares, no-par value: Outstanding 1 Jan., 34,200,000 shares Sold and issued 1 April, 3,250,000 shares Issued 50% stock dividend, 30 Sept., 18,725,000 share Retained earnings $7,350,000 1,420,000 $10,200,000 10,200,000 1,510,000 10,280,000 7,912,000 The company declared and paid preferred dividends of $22,000 during the year and had an effective tax rate of 20%. Required: 1. Compute basic EPS. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Basic EPS 2. Repeat requirement 1, assuming that the preferred shares are cumulative. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Basic EPS