Beach Company reported net income of $880,000 for the fiscal year ended October 31, 2018. Its capital structure included the following as at October 31, 2017:

Long-term debt

Notes payable	$ 200,000
Bonds payable, due 2020, 9%, convertible into common shares at the rate of 30 shares per $1,000	$ 700,000

Shareholders' equity

Preferred shares, $1, no-par, cumulative, convertible into common shares at the rate of one preferred share for one common share, 65,000 shares outstanding	$ 300,000
Common shares, no-par 400,000 shares outstanding	$ 800,000
Contributed capital: conversion rights on convertible bonds	$ 40,000
Contributed capital: common share options outstanding (see note 1 below)	$ 150,000

Additional information:

1. The 200,000 options have been outstanding for the entire year. The exercise price is $35 per share. Each option allows the purchase of one common share. The common share price averaged $48 per share during the year.

2. On May 1, 2018, 90,000 common shares were issued for cash.

3. On September 1, 2018, 6,300 common shares were issued on the conversion of 30% of the bonds.

4. The tax rate is 30%.

5. No dividends have been declared or paid in the past 3 years.

Required:

a. Calculate Beach's basic earnings per share (EPS) for the year 2018.

b. Calculate Beach's diluted earnings per share for the year 2018. Provide diluted amounts even if not materially different from basic earnings per share.