Abba Ltd. provides the following information for calendar 2020

1. Net income $ 420,000

2. Capital Structure

1. Class A preferred shares, $6, no par value, cumulative, $ 600,000

6,000 shares outstanding

2. Class B preferred shares, $8, no par value, non-cumulative, $ 500,000

5,000 shares outstanding

3. Common shares, 200,000 shares were issued and outstanding $ 1,000,000

Instructions

1. Calculate basic earnings per share for 2020, assuming that the Abba has declared and paid preferred dividends in full and $1 per share common dividends each year since 2018, including the current year, 2020.
2. Calculate basic earnings per share for 2020, assuming that the Abba has not declared any dividends since 2018, including the current year, 2020.