Amy Dyken, controller at Vaughn Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Vaughn's financial statements. Below is selected financial information for the fiscal year ended June 30, 2025. Vaughn Pharmaceutical Industries Selected Balance Sheet Information June 30, 2025 Long-term debt Notes payable, 10% $990,000 9% convertible bonds payable 4,920,000 10% bonds payable 6,000,000$11,910,000 Shareholders' equity Preferred stock, 6% cumulative, $50 par value, 103,000 shares authorized, 25,750 shares issued and outstanding $1,287,500 Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstanding 980,000 Additional paid-in capital 3,970,000 Retained earnings Total shareholders' equity 6,010,000 $12,247,500 The following transactions have also occurred at Vaughn. 1. Options were granted on July 1,2024 , to purchase 210,000 shares at $16 per share. Although no options were exercised during fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share. 2. Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2024. 3. The preferred stock was issued in 2024. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025. 5. The 980,000 shares of common stock were outstanding for the entire 2025 fiscal year. 6. Net income for fiscal year 2025 was $1,480,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2025, calculate the following for Vaughn Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. 2.45.) a. Basic earnings per share. Basic earnings per share $ b. Diluted earnings per share. Diluted earnings per share $ Amy Dyken, controller at Vaughn Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Vaughn's financial statements. Below is selected financial information for the fiscal year ended June 30, 2025. Vaughn Pharmaceutical Industries Selected Balance Sheet Information June 30, 2025 Long-term debt Notes payable, 10% $990,000 9% convertible bonds payable 4,920,000 10% bonds payable 6,000,000$11,910,000 Shareholders' equity Preferred stock, 6% cumulative, $50 par value, 103,000 shares authorized, 25,750 shares issued and outstanding $1,287,500 Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstanding 980,000 Additional paid-in capital 3,970,000 Retained earnings Total shareholders' equity 6,010,000 $12,247,500 The following transactions have also occurred at Vaughn. 1. Options were granted on July 1,2024 , to purchase 210,000 shares at $16 per share. Although no options were exercised during fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share. 2. Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2024. 3. The preferred stock was issued in 2024. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025. 5. The 980,000 shares of common stock were outstanding for the entire 2025 fiscal year. 6. Net income for fiscal year 2025 was $1,480,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2025, calculate the following for Vaughn Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. 2.45.) a. Basic earnings per share. Basic earnings per share $ b. Diluted earnings per share. Diluted earnings per share $