ABC Limited had net income for the fiscal year ending December 31, 2020, of $15.4 million. There are 2 million common shares outstanding throughout 2020. The average market price of the commi shares for the entire fiscal yeat was $75. ABC tax rate was 25% for 2020.

ABC had the following potential common shares outstanding during 2020:

-Options to buy 100,000 common shares at $60 per share

-800,000 convertible preferred shares entitled to a cumulative dividend of $9 per share. Each preferred share is convertible into two common shares.

-6% convertible debenture with a principal amount if $100 million, issued at par. Each $1,000 debenture is convertible into 20 common shares.

Instructions

1. Calculate the basic earnings per share

2. Calculate the Diluted earnings per share