1) Arlt Inc., a publicly accountable corporation, has a July 31 year end. For the 2020 fiscal year, there were 100,000 common shares outstanding all year. Net income for the year ended July 31, 2020 was $ 950,000. Their income tax rate is 30%. Part A During the 2019 fiscal year, Arlt issued at para 5% convertible bond, face value $5,000,000. Each $1,000 bond is convertible into 20 common shares. No bonds were converted in 2019, however, on March 31, 2020, 50% of the bonds were converted into common shares. Part B On August 1, 2019, Arlt issued 100,000, $ 2, cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. On September 30, 2019, 20% of these preferred shares were converted to common shares. The preferred share dividend was declared and paid on June 15, 2020. Instructions Treating each part independently, calculate basic and diluted earnings per share for fiscal 2020. Use the following information to answer the questions below. Harley Corp. has been operating successfully for the past fifteen years. However, during recent years, its common shares outstanding changed as shown below. The corporation uses the calendar year as its fiscal year. 2020 300,000 2019 240,000 2018 200,000 40,000 60,000 Shares outstanding, Jan 1 Shares sold, Apr 2018 25% stock dividend, Jul 1, 2019 2-for-1 stock split, Jul 1, 2020 Shares sold, Oct 1, 2020 Shares outstanding, Dec 31 Net Income 300,000 100,000 700,000 $750,000 300,000 660,000 240,000 598,000