The following data are presented by Washperson Ltd. for calendar 2014: Net income Common shares outstanding, 1,000,000 shares $4,500,000 $15,000,000 10%, $100 par value cumulative preferred shares. convertible into 120,000 common shares $1,600,000 8% convertible bonds; convertible into 105,000 common shares $7,500,000 4,000,000 stock options exercisable at $20 per share Additional information: 1. The common and preferred shares and stock options were outstanding all year. The convertible bonds were outstanding from July 1, 2014. 2. In 2014, a $500,000 dividend was declared and distributed, however, no dividends were declared in 2012 or 2013. 3. The average market price of the common shares in 2014 was $80. The stock price was $27 on January 1, 2014, and $135 on December 31, 2014. 4. The convertible bonds were issued when the market rate was 6%. The bonds require annual interest payments and sold at a premium. During the year the amortization of the premium was $ 56,044. 5. The income tax rate for 2014 is 30%. Instructions a. Calculate basic EPS. b. Calculate diluted EPS.