Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Selected financial information for the fiscal year ended June 30, 2015, is shown below.

The following transactions have also occurred at Fitzgerald.
1. Options were granted on July 1, 2014, to purchase 200,000 shares at €15 per share. Although no options were exercised during fiscal year 2015, the average price per ordinary share during fiscal year 2015 was €20 per share.

2. Each bond was issued at face value. The convertible bonds will convert into ordinary shares at 50 shares per €1,000 bond. It is exercisable after 5 years and was issued in 2013. The interest on the liability component of the convertible bonds payable for the fiscal year ending June 30, 2015, was €450,000.
3. The preference shares were issued in 2013.
4. There are no preference dividends in arrears; however, preference dividends were not declared in fiscal year 2015.
5. The 1,000,000 ordinary shares were outstanding for the entire 2015 fiscal year.
6. Net income for fiscal year 2015 was €1,500,000, and the average income tax rate is 40%.
Instructions For the fiscal year ended June 30, 2015, calculate the following for Fitzgerald Pharmaceutical Industries.

(a) Basic earnings per share.

(b) Diluted earnings per share.

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Equity FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION JUNE 30, 2015 Share capital-preference, 6% cumulative, 50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding Share capital-ordinary, 1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding Share premium-ordinary (includes any amounts for options and conversions) Retained earnings Total equity Long-term debt Notes payable, 10% Convertible bonds payable 10% bonds payable Total long-term debt 1,250,000 1,000,000 4,000,000 6,000,000 12,250,000 1,000,000 5,000,000 6,000,000 12,000,000