Xingia Inc. earns profits of $2,500,000 for the year ended December 31, 2008. Xingia

has 1,000,000 weighted average shares outstanding during the year and pays taxes at the

rate of 40%. Xingia also has 1,000 convertible preferred shares outstanding, which pay a

dividend of $50 per share every year. Each convertible preferred share can be converted

into 100 common shares. Calculate Xingias basic and diluted EPS for 2008.