For the year ending 30 June 2016, Green Island plc reports a net profit after tax of 1,800,000. At the beginning of the financial year Green Island plc had 500,000 fully paid ordinary shares outstanding. Green Island plc also had 100,000 partly paid shares. These shares were partly paid to 90p and had an original issue price of 2.00. The partly paid shares carry the rights to dividends in proportion to the amount paid relative to the total issue price. They were still partly paid at year end. Apart from the above, Green Island plc also has the following securities outstanding: 1 million of 10 per cent debentures issued on 1 August 2015. The debentures have a life of five years and give holders the right to convert the debentures into 400,000 fully paid ordinary shares. In 2014 employees were provided with options, at no initial cost, which gave them the right to acquire 250,000 shares at an exercise price of 2.30. The options expire five years after their original issue date. Given the time period to option expiry, the directors believe it is probable that the options will be exercised. In 2014 Green Island plc issued 200,000 10 per cent, cumulative dividend preference shares. They were issued at 1.00 each and provide the shareholders with the right to convert each two preference shares into one fully paid ordinary share.

Other information The company tax rate is 40 per cent. The average market price of the ordinary shares for the financial year is 2.50. REQUIRED Compute the amounts for 2016 of Green Island plc's: (a) basic earnings per share (b) diluted earnings per share