During 2020, ABC Co. had net income of $900,000. The company has 20,000 shares of 5%, 100 par, convertible preferred stock outstanding, and 1,500, 10% convertible bonds outstanding, which were issued at par. The preferred shares and the convertible bonds were issued in 2017. Each share of convertible preferred stock is convertible into 5 shares of common stock. Each bond is convertible into 90 shares of common stock. The company has a tax rate of 21% and a weighted average shares outstanding of 800,000 throughout 2020.

Instructions:

1. Compute Basic EPS for 2020 2. Compute Diluted EPS for 2020