Jackie Stamping began the current year with $500,000$ common shares outstanding and issued an

additional $120,000$ shares on October $1.$ The firm has $$11,300,000,1\mathrm{.}5\%$ convertible bonds outstanding

for a full year $($i$.$e$.,$ $$169,500$ coupon interest per year$),$ which are convertible into $329,000$ shares of

common stock. The firm issued the bonds at par and did not convert any during the current year. It also

had $$1,240,000$ par value, $3\%$ nonconvertible, noncumulative preferred stock outstanding for the full

year and declared dividends for the current year. The company is subject to a $30\%$ tax rate and net

income is $$3,800,000.$

Requirement

Based on this information, compute basic and diluted earnings per share for the current year.

Compute the basic earnings per share for the current year. $($Rounds the EPS to the nearest cent, X$.$XX$).$

Compute the diluted earnings per share for the current year. $($Rounds the EPS to the nearest cent, X$.$XX$).$

Please answer the two questions above.