Webster Ltd has the following partial statement of financial position as at 31 December 2010. EQUITY AND LIABILITIES 500,000 ordinary shares 25,000 convertible irredeemable preference shares, 10% cumulative Retained earnings $ 2,500,000 2,500,000 9,000,000 14,000,000 Non-current liabilities Notes payable, 14% Convertible bonds payable (issue A) Convertible bonds payable (issue B) 1,000,000 2,500,000 2.500,000 6,000,000 Additional information during the year ended 31 December 2010: 1. 50,000 options were granted in July 2008 to purchase 50,000 ordinary shares at $20 per share. The average market price of Webster's ordinary shares during 2010 was $30 per share. All options are still outstanding at the end of 2010. 2. Both convertible bonds issued in 2009. Each convertible bond is convertible into 40 shares of ordinary shares with a face value of $1,000. In 2010, interest expense of $200,000 on the liability component of convertible bonds (issue A) recorded, and interest expense of $250,000 is recorded on the liability component of convertible bond (issue B). 3. The 10% cumulative, convertible irredeemable preference shares issued at the beginning of 2010 at $100 each. Each preference share is convertible into four ordinary shares. 4. The average income tax rate is 40%. 5. The 500,000 ordinary shares were outstanding during the entire year. 6. No preference dividends declared in 2010. 7. Net profit was $1,750,000 in 2010. 8. No bonds or preference shares converted during 2010. Required: Calculate the basic and diluted earnings per share for the year ended 31 December 2010