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

                                                                    December 31,

                                                        2013                                2014

Common stock                               90,000 shares                      90,000 shares                     

Convertible preferred stock              10,000 shares                      10,000 shares

8% convertible bonds                        $1,000,000                        $1,000,000

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 nearest penny?