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Arens Jones is the controller at KLM Pharmaceutical Industries, a public company. She is ourrently preparing the calculation for basic and diluted earnings per share

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Arens Jones is the controller at KLM Pharmaceutical Industries, a public company. She is ourrently preparing the calculation for basic and diluted earnings per share and the related disclosure for Camden's extemal financial statements. The following is selected financial information for the fiscal year ended June 30, 2023: KLM Pharmaceutical Industries Statement of Financial Position June 30,2023 Long-term debt Notes payable, 10% $1,000,000 7% convertible bonds payable 5,000,000 10% bonds payable 6.000.000 Total long-term debt $12,000,000 Shareholders' equity Preferred shares, 4.25 cumulative, 100,000 shares authorized, 20,000 shares issued and outstanding $1,000,000 Common shares, unlimited number of shares authorized, 1,100,000 shares issued and outstanding 4,950,000 Contributed surplus-conversion rights 500,000 Retained earnings 6,000,000 Total shareholders' equity $12,450,000 The following transactions have occurred at Camden: 1. Options were granted by the company in 2021 to purchase 100,000 shares at $15 per share. Although no options were exercised during 2023, the average price per common share during fiscal year 2023 was $20. Shareholders' equity Preterred shares, 4.25 cumulative, 100,000 shares authorized, 20,000 shares issued and outstanding $1,000,000 Common shares, unlimited number of shares authorized, 1,100,000 shares issued and outstanding 4,950,000 Contributed surplus - conversion rights 500,000 Retained earnings 6,000,000 Total shareholders' equity $12,450,000 The following transactions have occurred at Camden: 1. Options were granted by the company in 2021 to purchase 100,000 shares at $15 per share, Although no options were exercised during 2023, the average price per common share during fiscal year 2023 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 50 shares per $1,000 bond. It is exercisable after five years and was issued in 2022. Ignore any requirement to record the bonds' debt and equity components separately. 3. The $4.25 preferred shares were issued in 2021. 4. There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2023. 5. The 1,000,000 common shares were outstanding for the entire 2023 fiscal year. 6. Net income for fiscal year 2023 was $1.5 million, and the average income tax rate was 30%. Instructions For the fiscal year ended June 30,2023, calculate the following for Camden (round to the nearest cent): 1. Basic earnings per share 2. Diluted earnings per share

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