On January 1, 2013, Tonge Industries had outstanding 580,000 common shares (par $1) that originally sold for $25 per share, and 5,000 shares of 10% cumulative preferred stock (par $100), convertible into 50,000 common shares.

On October 1, 2013, Tonge sold and issued an additional 12,000 shares of common stock at $34. At December 31, 2013, there were incentive stock options outstanding, issued in 2012, and exercisable afterone year for 21,000 shares of common stock at an exercise price of $32. The market price of the common stock at year-end was $50. During the year the price of the common shares had averaged $42.

Net income was $720,000. The tax rate for the year was 40%.

Required:

Compute basic and diluted EPS for the year ended December 31, 2013. (Do not round intermediate calculations and round your final answers to 2 decimal places.)