Net Income for the year $1,200,000

8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% $2,000,000

6% convertible, cumulative preference shares, $100 par value; each share is convertible into 3 shares of ordinary shares. $4,000,000

Ordinary shares, $10 par value $6,000,000

Tax rate for 2019 40%

Average market price of ordinary shares $25 per share

a. Compute basic earnings per share for 2019 (4 marks)

b. Compute diluted earnings per share for 2019 (3 marks)

c. State the Presentation and Disclosure requirements (3 marks)