For 2020, Westmount Corp. had 200,000 common shares outstanding for the full year. Westmount follows IFRS. Market prices of the common shares during 2020 were:

January 1: $45; Years average: $50; December 31: $52.

Westmounts income tax rate is 40%.

During 2020, there were:

1. 40,000 outstanding stock options to buy common shares at $40 a share.
2. $3,000,000 of 6% convertible bonds issued at par. Each $1,000 bond is convertible into 20 common shares.
3. 20,000 preferred shares each paying a $3 dividend and each convertible to 1 common share.

The corporation reported $900,000 net income for calendar 2020.

Instructions

Calculate basic and diluted earnings per share for 2020. Show all calculations for possible part marks. Arrange your answer as per the method used in the text.