On 01-01-20, Fred had 3,456,000 shares of $1 par value common stock outstanding. On 03-31-20, Fred issued 360,000 shares of its common stock. On 05-01-20, Fred distributed a 10% common stock dividend. On 06-30-20, Fred issued 900,000 shares of its common stock. On 11-30-20, Fred purchased 2,400,000 shares of its common stock. Freds net income for the year ended 12-31-20 was $3,985,000 while Freds income tax rate during 2020 was 20%. During 2020, Fred declared and paid no cash dividends on its common stock.

As of 12-31-20, Fred had $6,000,000 of 5%, 10-year convertible bonds. Fred issued the bonds at par during 2019. The bonds can be converted into 48,000 shares of Freds common stock.

Throughout 2020, Fred had 480,000 outstanding employee stock options. Each option had an exercise price of $25 per share of Fred common stock. During the year ended 12-31-20, the average market price of Freds common stock was $30 per share.

What will Fred report as its basic earnings per share for the year ended 12-31-20?

What will Fred report as its diluted earnings per share for the year ended 12-31-20?