Kulkulcan Technology Co. provides the following data at December 31, 2013.

Operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,460,000

Operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $790,000

Income tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35%

Common stock outstanding during the entire year . . . . . . . . . . . . . . . . . . . . . 34,000 shares

On January 1, 2013, there were options outstanding to purchase 9,000 shares of common stock at $20 per share. The average market price for the year was $26 per share. The balance sheet reports $510,000 of 7% nonconvertible bonds at December 31, 2013. (Interest expense is included in operating expenses.)

Instructions:

1. Compute basic EPS for 2013.

2. Compute diluted EPS for 2013.