The net income of Foster Furniture, Inc., amounted to $1,500,000 for the current year.

a.	Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: (Round your answers to 2 decimal places.)

1.	400,000 shares of $1 par value common stock and no preferred stock.

Earnings Per Share:?

2.	100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock.

Earnings Per Share:?

b.	Is the earnings per share figure computed in part a(2) considered to be basic or diluted?