Jones is the controller at KLM Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Camdens external financial statements. The following is selected financial information for the fiscal year ended June 30, 2023:

KLM Pharmaceutical Industries

Statement of Financial Position

June 30, 2023

Long-term debt

Notes payable, 10% $ 1,000,000

7% convertible bonds payable 5,000,000

10% bonds payable 6,000,000

Total long-term debt $12,000,000

Shareholders equity

Preferred shares, $4.25 cumulative, 100,000 shares authorized, 30,000 shares issued and outstanding $ 1,500,000

Common shares, unlimited number of shares authorized, 1,300,000 shares issued and outstanding 5,850,000

Contributed surplusconversion rights 500,000

Retained earnings 6,000,000

Total shareholders equity $13,850,000

The following transactions have occurred at Camden:

1- Options were granted by the company in 2021 to purchase 100,000 shares at $15 per share. Although no options were exercised during 2023, the average price per common share during fiscal year 2023 was $20.

2- Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 50 shares per $1,000 bond. It is exercisable after five years and was issued in 2022. Ignore any requirement to record the bonds debt and equity components separately.

3- The $4.25 preferred shares were issued in 2021.

4- There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2023.

5- The 1,000,000 common shares were outstanding for the entire 2023 fiscal year.

6- Net income for fiscal year 2023 was $1.5 million, and the average income tax rate was 30%.

Instructions

For the fiscal year ended June 30, 2023, calculate the following for Camden (round to the nearest cent):

Basic earnings per share

Diluted earnings per share