June Company had $800,000 net income in 2023. On 1 January 2023, there were 400,000 ordinary shares outstanding. On 1 April, 10,000 shares were issued and on 1 May, the company issued 5% bonus issue on ordinary shares. 30,000 treasury shares were repurchased from the open market at $35 on I September.

On 1 March 2023, the company issued 200,000 9%, noncumulative and nonconvertible preference shares (at SI par value).

June Company issued $1,000,000 of 8% convertible bonds at face value during 2022. Each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 100,000 options to buy ordinary shares at $30 if the net income is over $300,000. The beginning and ending market price of the ordinary shares was $46 and $54 respectively during the year 2023.

At the financial year-end, dividends on preference shares are declared and paid. In addition, the company declared and paid $5 cash dividends to all ordinary shareholders. Assume the tax rate for 2023 is 40%.

Required: (Note: answers must be rounded to two decimal places)

a) Calculate the basic earnings per share for 2023.

b) Calculate the diluted earnings per share for 2023.

c) Assume the preference shares issued are convertible and each 200 preference share is convertible into 45 ordinary shares, how would it affect your answers in part (b).

June Company had $800,000 net income in 2023. On 1 January 2023 , there were 400,000 ordinary shares outstanding. On 1 April, 10,000 shares were issued and on 1 May, the company issued 5% bonus issue on ordinary shares. 30,000 treasury shares were repurchased from the open market at $35 on 1 September. On 1 March 2023, the company issued 200,000 9%, noncumulative and nonconvertible preference shares (at \$1 par value). June Company issued $1,000,000 of 8% convertible bonds at face value during 2022. Each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 100,000 options to buy ordinary shares at $30 if the net income is over $300,000. The beginning and ending market price of the ordinary shares was $46 and \$54 respectively during the year 2023 . At the financial year-end, dividends on preference shares are declared and paid. In addition, the company declared and paid $5 cash dividends to all ordinary shareholders. Assume the tax rate for 2023 is 40%. Required: (Note: answers must be rounded to two decimal places) a) Calculate the basic earnings per share for 2023 . (9 marks) b) Calculate the diluted earnings per share for 2023 . (9 marks) c) Assume the preference shares issued are convertible and each 200 preference share is convertible into 45 ordinary shares, how would it affect your answers in part (b). ( 7 marks)