Charles Swindle of the controller's office of the Dither Corporation was given the assignment of determining the basic and diluted EPS values for the year ending Dec. 31, 2020. Swindle has compiled the information listed below: 1. The company is authorized to issue 10,000,000 shares of $10 par value common stock. As of Dec. 31, 2019, 4,000,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as follows: Price per share July 1, 2019 Jan 1, 2020 July 1, 2020 November 1, 2020 Dec. 31, 2020 $ 20.00 21.00 18.00 9.00 10.00 3. A total of 800.000 shares of an authorized 1,200,000 shares of convertible preferred stock had been issued on July 1, 2019. The stock was issued at its par value of $25, and has a cumulative dividend of $3 per share. The stock is convertible into common stock at a rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30. 4 Dither Corporation is subject to a 40% income tax rate. 5. The after-tax net income for the year ended Dec. 31, 2020 was $11,550,000. The following specific activities took place during 2020: 1. January 1-A 5% common stock dividend was issued. The dividend had been declared on Dec. 1, 2020 to all stockholders of record on Dec. 15, 2019. 2. April 1-A total of 400,000 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2020. 3. July 1-A 2-for-1 split of the common stock became effective as of this date. The BOD had authorized the split on June 1. 4. August 1-A total of 300,000 shares of common stock were issued to acquire a factory building. 5. November 1 - A total of 24,000 shares of common stock were purchased in the open market at $9 per share. These shares were held as treasury stock and were still held in the treasury as of Dec. 31, 2020. 6. Common stock cash dividends - Cash dividends were declared and paid as follows: April 15-$0.30 per share October 15-$0.20 per share 7. Preferred stock cash dividends - Cash dividends to preferred stockholders were declared and paid as scheduled. Required: a) Compute the Basic earnings per share for the year ended Dec. 31, 2020. b) Compute Diluted earnings per share for the year ended Dec. 31, 2020.