A company's issued share capital is £2 million, comprising four million ordinary shares of 25p each and one million 8% preference shares of £1. An extract from the company's statement of comprehensive income for the year to 31 March 2018 is as follows:

                                            £000
Profit before tax................ 485
Taxation............................... 95
                                             ——
Profit after tax....................390
                                             ——

Preference dividends of £80,000 were paid during the year.

Required:

(a) Calculate basic EPS for the year.

(b) Recalculate basic EPS for the year on the assumption that the company's profit after tax includes profit of £50,000 from a discontinued operation.