Hastings Way Limited (HWL) had the following selected securities outstanding as at December 31, 2020:

Equity:

Preferred shares, $3 dividend, payable

quarterly, no-par, cumulative and

convertible shares; 100,000 shares authorized,

30,000 issued and outstanding...........................................3,700,000

Common shares, unlimited authorized

1,500,000 issued and outstanding......................................4,000,000

Common share conversion rights.....................................89,000

Stock options, common..........................................................345,000

Long term debt:

8.5% convertible debentures, par value $2,500,000

net of premium, interest paid annually................................2,621,000

Other information for 2020:

a)1,000,000 common shares were issued on June 30, 2020

b)2020 before tax income from continuing operations was $1,914,286 and before tax Other Comprehensive Income was $200,000.

c)Premium amortization was $12,500 on the 8.5% debentures.

d)Employee stock options were issued on June 30, 2020 to purchase 50,000 common shares at $20 per share in 2024.

e)The preferred shares were issued on October 1, 2016, and are convertible into common shares at a rate of 6.8 common for 1 preferred. These shares are one year in arrears as to dividends.

f)HWL's tax rate is 30%

g)The 8.5% convertible debentures are convertible at a rate of seven shares for each $100 bond.

h)Common shares traded for the year at an average of $45, for the last 6 months of the year at $40 and at year end for $50. Under the provisions of the company bylaws dividends on preferred shares were permitted to accumulate while dividends on common shares can be paid. Dividends were declared on common shares only of $.25 per share in December, 2020.

Required: Prepare all EPS disclosures.

Earnings available toWeighted averageEarnings

common shareholdersnumber of sharesper Share

Basic EPS (4)

Individual dilutive effects and ranking: (4)

Earnings available to Weighted average Earnings

common shareholders number of shares per Share

Dilution process (2)