The information below pertains to Waterway Company for 2026 . Net income for the year 7% convertible bonds issued at par ( $1,000 per bond): each bond is convertible into 30 shares of common stock 1,990,00 6% convertible, cumulative preferred stock. $100 par value; each share is convertible into 3 shares of common stock 3.990 .00 Common stock, $10 par value 6,140,00 Tax rate for 2026 20 ; Average market price of common stock $25 pershar There were no changes during 2026 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 purchase 70,900 shares of common stock at $20 pershare. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, eg. 2.55) Basic earnings per share b. Compute diluted earnings per share for 2026 . (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share \$