Information concerning the capital structure of the Petrock Corporation is as follows:

During 2014, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 2014, was $285,000, and the company€™s income tax rate was 40%.

Required:
1. What was basic EPS for 2014, rounded to the nearest penny?
2. What was diluted EPS for 2014, rounded to the nearestpenny?

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December 31, 2013 90,000 shares 10,000 shares $1,000,000 2014 Common stock Convertible preferred stock 8% convertible bonds 90,000 shares 10,000 shares $1,000,000