Hillcrest Corporation's capital structure is as follows:

The following additional information is available.
(a) On September 1, 2012, Hillcrest sold 74,000 additional shares of common stock.
(b) Net income for the year ended December 31, 2012, was $920,000.
(c) During 2012, Hillcrest declared and paid dividends of $6 per share on its preferred stock.
(d) The 10% bonds are convertible into 50 shares of common stock for each $1,000 bond.
(e) Unexercised options to purchase 25,000 shares of common stock at $24.00 per share were outstanding at the beginning and end of 2012. The ending market price of Hillcrest's common stock for 2012 was $34 per share.
(f) Warrants to purchase 36,000 shares of common stock at $36 per share were attached to the preferred stock at the time of issuance. The warrants, which expire on December 31, 2017, were outstanding at December 31, 2012.
(g) Hillcrest's effective income tax rate was 30% for 2011 and 2012.
Instructions:
1. For the year ended December 31, 2012, compute basic EPS.
2. Compute diluted EPS for2012.

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December 31, 2012 2011 Outstanding shares of. Common stock Nonconvertible, noncumulative preferred stock 294,000 12,000 $800,000 220,000 2,000 $900,000 10% convertible bonds