Computing Basic and Diluted Earnings per Share

During 2015, Park Corporation had 100,000 shares of $10 par value common stock and 20,000 shares of 8%, $50 par value convertible preferred stock outstanding. Each share of preferred stock may be converted into three shares of common stock. Park Corporation's 2015 net income was $440,000. Required a. Compute the basic earnings per share for 2015. (Round answer to two decimal places.)

b. Compute the diluted earnings per share for 2015. (Round answer to two decimal places.)