n 2020 Our Company had Net Income of $825,000. On 1/1/20, there were 150,000 shares of common stock outstanding. On 4/1/20, we issued 54,000 shares of common stock. On 6/1/20, we issued 36,000 shares of $100 par value, 6% cumulative preferred stock. This preferred stock is convertible into 72,000 shares of common stock. On 9/1/20, we issued $9,000,000 of 4% bonds at par. These bonds are convertible into 72,000 shares of common stock. The marginal tax rate is 25%. In addition, there are 135,000 options outstanding at 12/31/20. Each option entitles the holder to exchange it for 1 share of common stock at an exercise price of $20 per share. The average market price for common stock for 2020 was $50. Please be sure to show your calculations so that you can earn partial credit.

How much is Basic Earnings Per Share? _______________________

How much is Diluted Earnings Per Share? _____________________

Show your calculations!