The following data are presented by Quentin Corp. for calendar 2020 Net income $ 8,000,000 Common shares outstanding, 1,000,000 shares 15%, cumulative preferred shares, convertible into 120,000 common shares $ 1,600,000 13,5% convertible bonds; convertible into 105,000 common shares $ 7,500,000 780,000 call options exercisable at $ 25 per share Additional information 1. The common and preferred shares and the convertible bonds were outstanding from the beginning of the year. 2. In 2020, a $ 500,000 dividend was declared and distributed; however, no dividends were declared in 2019. 3. The average market price of the common shares in 2020 was $ 30. The stock price was $ 27 on January 1, 2020, and $ 35 on December 31, 2020. 4. The convertible bonds were sold at par. 5. The income tax rate for 2020 is 30%. Instructions

a) Calculate basic EPS. b) Calculate diluted EPS.