On December 31, 2016, Kanuk Utilities Corporation which adopted IFRS had 600,000 common shares and 300,000 noncumulative, non-convertible preferred shares issued and outstanding. Kanuk issued a 4% common stock dividend on May 15, 2017 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2017.

On February 28, 2017, Kanuk issued 60,000 common shares. Also as a part of a 2016 agreement for the acquisition of Vicks Vineyards Co, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Vicks Vineyard shareholders on December 31, 2018 if Vicks 2018 net income is at least $500,000. In 2017, Vicks Vineyards net income was $630,000.

In keeping with its long-term share repurchase plan, 3,000 shares were repurchased and cancelled on July 1, 2017. Kanuk net income after tax for the year ended December 31, 2017 was $2,100,000. The income tax rate is 40%.

On July 1, 2015 Kanuk had issued $800,000 of convertible debentures at face value. Each $1,000 bond is convertible into 30 common shares (not adjusted for the stock dividend). 2017 interest expense was $80,000 on these bonds.

Required:

Compute Kanuks basic and diluted EPS for the year ended December 31, 2017.