The Duckworth Ltd. 20X5 financial statements include the following:

Statement of comprehensive income
Year ended 31 December 20X5
Earnings from continuing operations	$	3,196,000
Discontinued operations (net of tax)		502,000
Net earnings and comprehensive income	$	3,698,000

Statement of financial position
31 December 20X5
Bonds payable, 7%, nonconvertible			$	11,400,000
Preferred shares, no-par value, $1.04, nonconvertible, noncumulative, outstanding during year, 640,000 shares				11,400,000
Common shares, no-par value:
Outstanding 1 Jan., 35,400,000 shares	$	7,290,000
Sold and issued 1 April, 3,310,000 shares		1,540,000
Issued 30% stock dividend, 30 Sept., 11,613,000 share		1,630,000		10,460,000
Retained earnings				7,924,000

The company declared and paid preferred dividends of $34,000 during the year and had an effective tax rate of 20%.

Required: 1. Compute basic EPS. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. Repeat requirement 1, assuming that the preferred shares are cumulative. (Do not round intermediate calculations. Round your answer to 2 decimal places.)