Throughout the 2019 fiscal year, Scorpio Corporation has 400,000 common shares outstanding (no preferred shares issued).

Also outstanding all year were 5,000 6% bonds (par value $5,000,000). Each $1,000 bond is convertible into 40 common shares. (5,000 bonds outstanding.)

During the fiscal year 2019, the corporation reports net income of $800,000. Their income tax rate is 25%.

a) Calculate basic earnings per share for 2019 (rounded to 2 decimal places).

b) Calculate diluted earnings per share for 2019 (rounded to 2 decimal places).