IFA Corporations had Net Income of $780,000 and the following information for January 2021

to December 2021.

Ordinary shares issued and outstanding:

Jan 1 500,000 shares

March 1 300,000 shares.

June 1 A 10% share dividend

August 1 120,000 shares.

October 1 700,000 shares.

December 1 A 2 for 1 share split

On January 1, 10% convertible debentures, $60,000,000 face value, were issued at par. Each

$1,000 debenture is convertible into 40 ordinary shares. The interest expense for the current year

related to the liability component of the convertible debentures is $6,500,000.

250,000 preference shares outstanding, $60 par, 10% cumulative, not convertible.

Options were granted to purchase 400,000 ordinary shares at $18 each. The companys average

market price of ordinary shares was $24.

10-year $3,000,000 face value, 8% bonds issued at par on May 1. Each $500 bond is convertible

into 30 ordinary shares. The interest expense on the liability component of convertible bonds for

the year was $360,000

The tax rate was 30%

Requirement

Calculate the basic earnings per share for 2021. (4 marks)