The following data are presented by Quentin Corp. for calendar 2017

• Net income $4,500,000
• Common shares outstanding, 1,000,000 shares
• 10%, cumulative preferred shares, convertible into 120,000 common shares $1,600,000
• 8% convertible bonds; convertible into 105,000 common shares $7,500,000
• 360,000 call options exercisable at $25 per share
• Additional information
• The common and preferred shares and the convertible bonds were outstanding from the beginning of the year.
• In 2017, a $500,000 dividend was declared and distributed; however, no dividends were declared in 2016.
• The average market price of the common shares in 2017 was $30. The stock price was $27 on January 1, 2017, and $35 on December 31, 2017.
• The convertible bonds were sold at par.
• The income tax rate for 2017 is 30%.
• Instructions
• a)Calculate basic EPS.
• b)Calculate diluted EPS.