At December 31, 2019, Kissit Inc. had 400,000 shares of common stock outstanding. The company also had 40,000 shares of $7 cumulative convertible preference stock. Each share is convertible into 4 shares of common stock. Transactions during 2020: July 1, 2020 Sold 200,000 shares July 8, 2020 Declared 100% stock dividend September 1, 2020 Sold 120,000 shares October 1, 2020 Purchased 60,000 shares to be retired Kissit Inc. reported a loss of $670,700 for the year 2020. Required: (1) Compute the basic earnings per share. Show calculations. (Round off the answer to 2 decimal places.) (5 marks) (2) Conduct the dilution test, compute diluted earnings (loss) per share, and discuss what Kissit Inc. should report for EPS for the year's annual report. Show calculations. (Round off the answer to 2 decimal places.) (5 marks) Question 4B: Earnings per Share (5 marks) Woolery Ltd. had 60,000 ordinary shares outstanding at January 1, 2018. On Oct 1, 2018, an additional 15,000 shares were sold for cash. Woolery also had convertible bonds outstanding throughout the year. The carrying amount of the bonds on January 1, 2018 was $5 million and the effective interest rate was 5%. The bonds are convertible into 50,000 ordinary shares. Net income for the year was $450,000. The tax rate is 30%. Required: Compute the diluted earnings per share for the year ended December 31, 2018. Show ..._l..--1_41_-_.. m..----.1 _.1'41_.. n--...---...-. A... v"\\ .1-....'.._...1 _I_n.... \\ {C --_..-.1-...\\