McNamara Ltd provides the following information for 2012:

1.Net Income [including an extraordinary gain (net of tax) of $160,000]$520,000

2.Capital Structure

(a)Cumulative $8, preferred shares, no par,

6,000 shares issued and outstanding$600,000

(b)Common shares, 76,000 shares outstanding on January 1.

On April 1, 40,000 shares were issued for cash.

On October 1, 16,000 shares were purchased and retired.$1,000,000

(c)On January 2, 2012, McNamara purchased O'Donnell Corporation.

One of the terms of the purchase was that if McNamara's net income for 2013 is $500,000 or more, 50,000 additional common shares would be issued to O'Donnell shareholders.

3.Other Information

(a)Average market price of the common shares during 2012$30

(b)Income tax rate30%

Required

Calculate basic and diluted earnings per share for 2012.

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