Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald$$s financial statements. Below is selected financial information for the fiscal year ended June $30,2020.$ Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June $30,2020$ Long$-$term debt Notes payable, $10\%$ $$1,000,0008\%$ convertible bonds payable $5,000,00010\%$ bonds payable $6,000,000$ Total long$-$term debt $$12,000,000$ Shareholders$$ equity Preferred stock, $6\%$ cumulative, $$50$ par value, $100,000$ shares authorized, $25,000$ shares issued and outstanding $$1,250,000$ Common stock, $$1$ par, $10,000,000$ shares authorized, $1,000,000$ shares issued and outstanding $1,000,000$ Additional paid$-$in capital $4,000,000$ Retained earnings $6,000,000$ Total shareholders$$ equity $$12,250,000$ The following transactions have also occurred at Fitzgerald. $1.$ Options were granted on July $1,2019,$ to purchase $200,000$ shares at $$15$ per share. Although no options were exercised during fiscal year $2020,$ the average price per common share during fiscal year $2020$ was $$20$ per share. $2.$ Each bond was issued at face value. The $8\%$ convertible bonds will convert into common stock at $50$ shares per $$1,000$ bond. The bonds are exercisable after $5$ years and were issued in fiscal year $2019.3.$ The preferred stock was issued in $2019.4.$ There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year $2020.5.$ The $1,000,000$ shares of common stock were outstanding for the entire $2020$ fiscal year. $6.$ Net income for fiscal year $2020$ was $$1,500,000,$ and the average income tax rate is $20\%.$ Instructions For the fiscal year ended June $30,2020,$ calculate the following for Fitzgerald Pharmaceutical Industries. a$.$ Basic earnings per share. b$.$ Diluted earnings per share.

Solve for diluted earnings per share and show formulas for every account such as

Net Income

Preferred Dividend

Interest Impact

Tax

Weighted average common shares

Diluted shares

Diluted EPS: