Kimchi Island Corporation reports the following information for 2020: * Net income of $2,000,000 and 2,000,000 weighted average number of shares outstanding for the accounting period. * 10,000 shares of convertible $100 par, 8% preferred stock were issued on January 1, 2021 Each share is convertible into 10 shares of shares of common stock and no dividends have been paid in 2021 or 2022. Convertible bonds were sold at par for $50,000 on April 1, 2022. The face value of each bond is $1,000, with an interest rate of 12%. Each bond is convertible into 1,000 shares of common stock. * A total of 10,000 unexpired stock options outstanding during 2022 with an exercise price of $10. * The tax rate is 20% and the stock price at the end of the 2022 is $20 per share. Required (show work and label answers), determine both of the following. 1. Basic earnings per share as reported on the income statement. 2. Diluted earnings per share as reported on the income statement.

Kimchi Island Corporation reports the following information for 2020: * Net income of $2,000,000 and 2,000,000 weighted average number of shares outstanding for the accounting period. * 10,000 shares of convertible $100 par, 8% preferred stock were issued on January 1, 2021. Each share is convertible into 10 shares of shares of common stock and no dividends have been paid in 2021 or 2022. * Convertible bonds were sold at par for $50,000 on April 1, 2022. The face value of each bond is $1,000, with an interest rate of 12%. Each bond is convertible into 1,000 shares of common stock. * A total of 10,000 unexpired stock options outstanding during 2022 with an exercise price of $10. * The tax rate is 20% and the stock price at the end of the 2022 is $20 per share. Required (show work and label answers), determine both of the following. 1. Basic earnings per share as reported on the income statement. 2. Diluted earnings per share as reported on the income statement