Computing Basic and Diluted Earnings per Share

During the year, Park Corporation had 75,000 shares of $10 par value common stock and 15,000 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 Corporations net income was $702,000 for the year. Required a. Compute the basic earnings per share for the year. (Round answer to two decimal places). b. Compute the diluted earnings per share for the year. (Round answer to two decimal places).