Galvin Ltd. Reported net income of $300,000 in 2018 and had 200,000 common shares outstanding throughout the year. Also outstanding all year were 45,000 (written) options to purchase common shares at $15 per share. The average market price during the year was $10 per share, and the tax rate was 25%.

Instructions:

1. Calculate the EPS (basic)
2. Calculate the diluted EPS (show the calculation for the number of shares)