Kimber Inc. reported net income of $177,500 during 2021.At January 1, 2021 Kimber had 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% cumulative preferred shares outstanding.On October 1, Kimber sold 10,000 shares of common stock for $6 per share.

1) What is the Basic eps for 2021 that Kimber would report?

2) If each share of preferred stock is convertible into 8 shares of common stock, what amount of diluted eps would Kimber report for 2021?