As at 31 December 2018, Conrad Company has 850,000 ordinary shares outstanding with par value of $5 each that originally issued at $15 per share. On 1 April 2019, Conrad issued 100,000 shares of 8%, $10 par value cumulative convertible preference shares (convertible into 200,000 common shares) and purchased 60,000 ordinary shares on the open market as treasury stock by paying $30 per share. On 1 June 2019, Conrad declared and issued a 2-for-1 share split. The company also issued 120,000 ordinary shares for cash at $22 per share on 1 November 2019. One month later, the company paid $500,000 cash dividends on the ordinary shares because of the significant increase of sales revenue. There were incentive share options granted to key executives of the company as at 31 December 2019. The options are exercisable as of 15 September 2018, for 60,000 shares at an exercise price of $20 per share. During 2019, the average and ending market price of ordinary shares were $25 and $30 per share respectively. During the year 2018, 6% convertible bonds were issued at par for $1,000,000. Each $1,000 bond is convertible into 250 ordinary shares. Conrad's net income for the year ended 31 December 2019 was $2.5 million and the income tax rate is 30%. There was neither conversion of the convertible bonds nor exercise of the incentive share options during the year of 2019. (b) Calculate the basic earnings per share (EPS) for 2019. (4 marks) (c) Calculate the diluted earnings per share for 2019. (11 marks)