Below are extracts from the financial statements of Bovine for the year to $31$ March

$2019$:

Income Statement

Continuing

Operations

$$000$

Discontinuing

Operations

$$000$

Total

$$000$

Profit $($loss$)$ before tax $1,580(200)1,380$

Tax $($charge$)$ relief $(280)50(230)$

Profit from the ordinary activities $1,300(150)1,150$

Extraordinary item as part of

continuing operations $($net of tax

relief of $$60)$

$(120)$

$1,030$

AF$2101$ Intermediate Financial Accounting I $-$ Tutorials

$2$

Balance Sheet:

Ordinary Shares of $25$ cents each $1,800,000$

$6\%$ Non$-$redeemable preference shares $500,000$

$10\%$ Convertible preference shares $$1$ each $1,000,000$

Non$-$Current Liabilities

$8\%$ Convertible loan stock $1,500,000$

Notes:

All shares and loan stocks were in issue prior to the beginning of the current

accounting year.

The $10\%$ convertible preference shares are convertible to ordinary shares on the

basis of three ordinary shares for every five preference shares on $31$ March $2021$ at

the option of the preference shareholders.

The $8\%$ convertible loan stock is redeemable on $31$ March $2021$ or can be converted

to ordinary shares on the basis of $120$ ordinary shares for each $$100$ of loan stock at

the holder's option.

There are also in issue directors' share options for four million ordinary shares.

These were issued on $31$ March $2018$ and are exercisable on $31$ March $2021$ at a

price of $$1\mathrm{.}40$ per share.

The market price of Bovine's shares can be taken as $$2\mathrm{.}00$ each.

Preference dividends are paid out of taxed profits. Interest on loan stock is an

allowable tax reduction. The rate of income tax is $25\%.$

Required:

$($a$)$ Calculate Bovine's basic and diluted earnings per share for the year

ended $31$ March $2019.$