Zeller Corporation began the year with 128,000 shares of common stock and 16,000 shares of convertible preferred stock outstanding. On March 1 an additional 10,000 shares of common stock were issued. On August 1, another 16,000 shares of common stock were issued. On November 1, 6,000 shares of common stock were acquired for the treasury. The preferred stock has a $2 per-share dividend rate, and each share may be converted into one share of common stock. Zeller Corporation's net income is $501,000. Required a. Compute basic earnings per share. Round to two decimal places. b. Compute diluted earnings per share. Round to two decimal places.