The information below pertains to Tamarisk Company for 2018.

Net income for the year$1,200,0007% convertible bonds issued at par ($1,000per bond); each bond is convertible into

30shares of common stock1,960,0006% convertible, cumulative preferred stock, $100par value; each share is convertible

into3shares of common stock3,930,000Common stock, $10 par value6,190,000Tax rate for 201840%Average market price of common stock$25per share

There were no changes during 2018 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase74,900shares of common stock at $20per share.

(a) Compute basic earnings per share for 2018.(Round answer to 2 decimal places, e.g. $2.55.)

Basic earnings per share$

(b) Compute diluted earnings per share for 2018.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share$