Bridgeman Company, headquartered in San Francisco, reported the following data for the current year.

• Net income, $2,220,000.
• Common shares outstanding at the beginning of the year, 800,000.
• Nonconvertible cumulative preferred stock, $100 par, $8 dividend per share per year, 100,000 shares outstanding all year.
• Issued 200,000 shares of common stock on October 1.
• Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 50,000 shares outstanding at the beginning of the year. On March 31, 20,000 shares of preferred stock converted to 40,000 common shares.
• For both preferred stock issues, assume dividends are paid for time held.

Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.

a. Compute basic EPS.

b. Compute diluted EPS.