Amy Dyken, controller at Ayayai Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Ayayai's financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.

AyayaiPharmaceutical Industries

Selected Balance Sheet Information

June 30, 2020

Long-term debtNotes payable,11%$1,010,000

8% convertible bonds payable5,050,000

11% bonds payable5,950,000

Total long-term debt$12,010,000

Shareholders' equityPreferred stock,6% cumulative, $50par value,105,000shares authorized,26,250shares issued and outstanding$1,312,500

Common stock, $1 par,9,800,000shares authorized,980,000shares issued and outstanding980,000

Additional paid-in capital3,940,000

Retained earnings5,910,000

Total shareholders' equity$12,142,500

The following transactions have also occurred at Ayayai.

1.Options were granted on July 1, 2019, to purchase200,000shares at $15per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20per share.2.Each bond was issued at face value. The8% convertible bonds will convert into common stock at50shares per $1,000bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019.3.The preferred stock was issued in 2019.4.There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.5.The980,000shares of common stock were outstanding for the entire 2020 fiscal year.6.Net income for fiscal year 2020 was $1,520,000, and the average income tax rate is20%.

(a)Basic earnings per share.

Basic earnings per share _________$

(b)Diluted earnings per share.

Diluted earnings per share __________$

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The information below pertains to Sweet Company for 2021.

Net income for the year$1,150,0006% convertible bonds issued at par ($1,000per bond); each bond is convertible into

30shares of common stock2,040,0006% convertible, cumulative preferred stock, $100par value; each share is convertible

into3shares of common stock4,130,000Common stock, $10 par value6,030,000Tax rate for 202120%Average market price of common stock$25per share

There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase73,600shares of common stock at $20per share.

(a)Compute basic earnings per share for 2021.(Round answer to 2 decimal places, e.g. $2.55.)

Basic earnings per share$__________

(b)Compute diluted earnings per share for 2021.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share$__________