The Waterway Corporation issued 10-year, $4,430,000par,7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is14:1, and in 2 years it will increase to19:1. At the date of issue, the bonds were sold at96. Bond discount is amortized on a straight-line basis. Waterway's effective tax was35%. Net income in 2017 was $9,050,000, and the company had1,885,000shares outstanding during the entire year.

(a) Compute both basic and diluted earnings per share.(Round to 2 decimal places)

Basic earnings per share $________

Diluted earnings per share $________