1. ABC's Net Income (net income) for the year 2022 was $980,000.
   
   As of the end of 2021, the total outstanding shares of DE ABC common stock were 1,585,000, par value of $1

At the beginning of January ABC purchased 210,000 common shares at $40 and retired them.

During both years ABC had 5,000 preferred shares outstanding convertible into 2,500 common shares outstanding. These shares received a dividend of $5,000 in 2022. 

During 2022, ABC had outstanding since 1/1 a total of 250,000 options convertible into 500,000 common shares.

 

Required:

1. Calculate ABC's Basic Profit for 2022.

2. Calculate ABC's Diluted Earnings for 2022