Bullwinkle Stamping began the current year with $450,000$ common shares outstanding and issued an

additional $270,000$ shares on September $1.$ The firm has $$11,400,000,3\mathrm{.}5\%$ convertible bonds on June

$30($i$.$e$.,$ $$399,000$ coupon interest annually$),$ which are convertible into $326,000$ shares of common

stock. The firm issued the bonds at par and did not convert any during the current year. It also had

$$1,230,000$ par value, $5\%$ nonconvertible, noncumulative preferred stock outstanding for the full year

and declared dividends for the current year. The company is subject to a $30\%$ tax rate and net income is

$$4,000,000.$

Requirement

Based on this information, compute basic and diluted earnings per share for the current year.

Calculate the basic earnings per share $($EPS$)$ for the current year. $($Rounds the EPS to the nearest cent, X$.$XX$)$

Calculate the diluted EPS for the current year. $($Rounds the EPS to the nearest cent, X$.$XX$)$

Please answer the two questions above.