Audrey Inc. has 1 million common shares outstanding as of January 1,2014. On June 30, 2014, 4% convertible bonds were converted into 100,000 additional shares. Up to that point, the bonds had paid interest of $250,000 after tax. Net income for the year was $1,298,678. During the year, the company issued the following:

1. June 30: 10,000 call options giving holders the right to purchase shares of the company for $30.

2. Sept. 30: 15,000 put options allowing holders to sell shares of the company for $25.

On February 1, Audrey also purchased in the open market 10,000 call options on its own shares, allowing it to purchase its own shares for $27. Assume the average market price for the shares during the year was $35.

Also:

3. On September 30, 200,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 100,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred.

4. There are 10,000 of $1,000, 5% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2015. Beginning January 1, 2018, the conversion rate is six common shares for each bond; and beginning January 1, 2022, it is nine common shares for each bond. The tax rate is 30%.

Instructions:

(a) Calculate the required EPS number under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security.

(b) Show the required presentations on the face of the income statement.