Question 1 (Basic and diluted earnings per share): The Frost Company has accumulated the following information relevant to its 20X1 earnings per share.

1. Net income for 20X1, $150,000.

2. Bonds payable: On January 1, 20X1, the company had issued 10%, $200,000 bonds. Each $1,000 bond is currently convertible into 20 shares of ordinary share. To date, no bonds have been converted.

3. Bonds payable: On January 31, 20X1, the company had issued $540,000 of 5.8% bonds. Each $1,000 bond is currently convertible into 11 shares of ordinary share. To date, no bonds have been converted.

4. Preference share: On July 1, 20X0, the company had issued 3,800 shares of $7.5 preference share at $108 per share. Each share of preference share is currently convertible into 2.45 shares of ordinary share. To date, no preference share has been converted and no additional shares of preference share have been issued. The current dividends have been paid.

5. Ordinary share: At the beginning of 20X1, 25,000 shares were outstanding. On July 1, 7,000 additional shares were issued. On September 1, a 20% bonus issue was declared and issued. On November 1, 2,000 shares were repurchased by the company.

6. Share options: Options to acquire 4,000 ordinary shares at a price of $33 per share were outstanding during all of 20X1. To date, no options have been exercised.

7. Miscellaneous: Stock market prices on ordinary share averaged $41 per share during 20X1, and the 20X1 ending stock market price was $40 per share. Income tax rate is 30%.

Required: Compute the basic and diluted earnings per share for 20X1 (Round to 2 decimal places).