Rio Inc. had 192,500 shares of common stock outstanding throughout the year. Net income for the year was $580,000. Rio Inc. had 3 potentially dilutive securities.

Potentially Dilutive Security	Numerator Effect	Denominator Effect
1	$28,000	8,250 shares
2	7,000	14,000 shares
3	0	3,000 shares

a. Compute basic earnings per share.

b. Compute diluted earnings per share.

Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Basic EPS	Answer	Answer	Answer
Diluted EPS	Answer	Answer	Answer