1. Throughout 2014, H had 3,770,000 shares of common stock issued and outstanding and 100,000 shares of 6%, $50 par value convertible preferred stock issued outstanding. Each share of preferred stock can be converted into 4 shares of Bs common stock. Hs net income for 2014 was $9,420,000. During 2014 H paid $300,000 of preferred dividends. Hs income tax rate is 20%.

• During the entire year ending 12-31-14, H had 400,000 outstanding and exercisable employee stock options that were granted to employees during 2013. Each option has an exercise price of $30 per share of H common stock. During 2014, the average market price of Hs common stock was $40 per share.
• As of 12-31-14, H had $5,000,000 of 5%, 15-year convertible bonds. H issued the bonds at par during 2005. The bonds can be converted into 10,000 shares of Hs common stock.
• As of 12-31-14, H had $10,000,000 of 10%, 40-year convertible bonds. H issued the bonds at par during 1995. The bonds can be converted into 400,000 shares of Hs common stock.

What will H report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.

What will H report as diluted EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.