Basic and diluted earnings per share

Arlt Inc., a publicly accountable corporation, has a July $31$ year end. For the $2022$ fiscal year, there were

$100,000$ common shares outstanding all year. Net income for the year ended July $31,2023$ was $$950,000.$ Its

income tax rate is $30\%.$

Part A During the $2022$ fiscal year, Arlt issued at par a $5\%$ convertible bond, face value $$5,000,000.$ Each

$$1,000$ bond is convertible into $20$ common shares. No bonds were converted in $2022,$ however, on March $31,$

$2023,50\%$ of the bonds were converted into common shares.

Part B On August $1,2022,$ Arlt issued $100,000,$ $$2,$ cumulative, convertible preferred shares. Two preferred

shares are convertible into one common share. On September $30,2022,20\%$ of these preferred shares were

converted to common shares. The preferred share dividend was declared and paid on June $15,2023.$

REQUIRED

Treating each part independently, calculate basic and diluted earnings per share for fiscal $2023.$