On 1 January 2019, Colson Company had 200,000 ordinary shares outstanding with par value of $l each that originally issued at $18 per share. On 1 April 2019, 20,000 ordinary shares were issued at $25 per share and on 1 May, the company issued 5% bonus issue as stock dividend for both ordinary shares and preference shares.

During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. On 1 March 2019, the company issued 200,000 9%, cumulative preference shares of par $1 per share.

Colson also issued $2,000,000 of 8% convertible bonds at face value during 2018 - each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 30,000 options to buy ordinary shares at the exercise price of $40 if the net income of the company can achieve over $450,000. The beginning and ending market price of the ordinary shares was $38 and $62 respectively during the year 2019.

Net income for the company was $500,000 in 2019, and the relevant corporate tax rate was 40%. At the financial year-end date of 2019, the company declared and paid $5 cash dividends to all ordinary shareholders.

Required: (Answers should be rounded to two decimal places)

(a) Calculate the basic earnings per share for 2019.

(b) Calculate the diluted earnings per share for 2019.