Problem 16-4 (EPS with Complex Capital Structure) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Selected financial information for the fiscal year ended 30 June 2022, is shown below: Equity Fitzgerald Pharmaceutical Industries Selected Statement of Financial Position Information 30 June 2022 Share capital-preference, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding..... Share capital-ordinary, S1 par, 10,000,000 shares authorized. 1,000,000 shares issued and outstanding $1,250,000 1,000,000 Share premium-ordinary (includes any amounts for options and conversions)... 4,000,000 Retained Earnings.. 6,000,000 Total equity $12,250,000 Long-term debt Notes payable, 10%... Convertible bonds payable.. 10% bonds payable.. $1,000,000 5,000,000 6,000,000 Total long-term debt $12,000,000 The following transactions have also occurred at Fitzgerald: 1. Options were granted on 1 July 2021, to purchase 200,000 shares at $15 per share. Although no options were exercised during the fiscal year 2022, the average price per ordinary share during fiscal year 2022 was $20 per share. 2. Each bond was issued at face value. The convertible bonds will convert into ordinary shares at 50 shares per $1,000 bond. The conversion is exercisable after 5 years, and the bonds were issued in 2020. The interest on the liability component of the convertible bonds payable for the fiscal year ending 30 June 2022, was $450,000. 3. The preference shares were issued in 2020. 4. There are no preference dividends in arrears; however, preference dividends were not declared in fiscal year 2022. 5. The 1,000,000 ordinary shares were outstanding for the entire 2022 fiscal year. 6. Net income for fiscal year 2022 was $1,500,000, and the average income tax rate is 40% Instructions: For the fiscal year ended 30 June 2022, calculate the following for Fitzgerald Pharmaceutical Industries: (a) Basic carnings per share. (b) Diluted earnings per share.