Greenhouse Corporation had 100,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 5,000 shares on July 1, issued a 20% stock dividend on October 1, and issued 18,000 shares on December 1. For 2020, the company reported net income of $400,000 after a loss from discontinued operations of $50,000 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company's financial statements for the year ended December 31, 2020, were issued on February 28, 2021.

Required:

a) (15 marks) Calculate earnings per share for 2020 as it should be reported to shareholders. Round to the nearest cent.

b) (10 marks) Describe the three-step process followed in arriving at diluted earnings per share when multiple potentially dilutive financial instruments are present.