Apple Limited is a listed company on the Hong Kong Stock Exchange. Its main business is the sales of fruits and vegetables. The financial year end of Apple Limited is 31 December. The number of issued ordinary shares as at 31 December 2019 was 5,000,000 with the value of $5,000,000. On 1 January 2020, Apple Limited issued convertible preference shares and convertible bonds to raise funds for the company. In order to motivate employees to have better performance, Apple Limited launched a performance award scheme to reward performing employees with options. Each option granted allows the employee to subscribe one ordinary share of Apple Limited. Apple Limited issued 900,000 options to ten employees on 1 January 2020. Information about the options, convertible preference shares and convertible bonds is given below:

Assignment File 13

Quantity Nominal value

Options 900,000

Exercise Dividend Interest Conversion ratio

price

$3

rate

Convertible preference shares	800,000			$12 per share		1 preference share to 5 ordinary shares
Convertible bonds		$6,000,000			20%	$1,000 convertible bond to 10 ordinary shares

The earnings attributable to ordinary shareholders of Apple Limited for the year ended 31 December 2020 was $7,000,000. The tax rate for the year 2020 was 15%. The average share price of ordinary shares of Apple Limited during 2020 was $10 per share.

Required:

Determine the basic and diluted earnings per share of Apple Limited for the year ended 31 December 2020 according to HKAS 33 Earnings Per Share.