Fairly Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% convertible bonds outstanding at December 31, 2020. There were no changes in the numbers of shares or bonds outstanding during 2020. The preferred stock is convertible into 40,000 shares of common stock. Each $1,000 bond is convertible into 45 shares of common stock. During 2020, Fairly Co. paid dividends of $1.20 per share on the common stock and $4.00 per share on the preferred stock. The net income for 2020 was $800,000 and the income tax rate was 30%.

1. Compute the companys basic earnings per share for 2020 (rounded to the nearest penny).

2. Compute the companys diluted earnings per share for 2020 (rounded to the nearest penny).