ACCT 350 MT1 Written Est. Length: 1:30:00 Time Taken:0:00:24 Zhongyi Liu: Attempt 1 Page 1: Question 1 (14 points) Listen 1 3 $2,800,000 5,000,000 3,500,000 The following information is for Solo Limited for 2020 Net income for the year Common shares (600,000 shares outstanding) 6% convertible, cumulative preferred shares, $100 par value, with each share convertible into four common shares Stock options (granted in a prior year) to purchase 60.000 common shares at $19 per share 10% convertible bonds issued at par ($1,000 per bond), with each bond convertible into 18 common shares Tax rate for 2020 Average market price of common shares 750,000 2.000.000 25% $22 per share There were no changes during 2020 in the number of common shares, preferred shares, or convertible bonds outstanding. For simplicity, ignore the requirement to book the convertible bonds' equily portion separately. Required: a. Calculate basic earnings per share for 2020 (2 marks). b. Calculate the individual dilutive effect of potentially dilutive items, and rank them (& marks) Calculate diluted earnings per share for 2020 (4 marks)