Information relating to the capital structure of Harry Porter Corporation at December 31,

2010 and 2011, is as follows:

Outstanding

Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 shares

Convertible preferred stock noncumulative (issued in 2009) . . . . . . . . . . . . . . .. . . 24,000 shares

7.5% convertible bonds (issued in 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900,000

Stock options to purchase 32,000 shares at $12. Market price of

Harry Porter stock was $18 at December 31, 2011.

Harry Porter Corporation paid dividends of $4 per share on its preferred stock.

The preferred stock is convertible into 48,000 shares of common stock. The 7.5% convertible bonds are convertible into a total of 26,000 shares of common stock. The net income for the year ended December 31, 2011, is $760,000. Assume that the income tax rate is 30%. Compute basic and diluted EPS for the year ended December 31, 2011.