QUESTION 2 (15 Marks)

The following information is provided for Present limited for the year ended 31 December 2020.

Present Limited had basic earnings for 2020 of R520 000. This basic earnings figure was equal to its profit for the year. It had no components of other comprehensive income. Present Limited had 2 200 000 ordinary shares in issue throughout 2020. There were 461 000 options in issue at 31 December 2020 (granted to the directors for no value).

Required: Calculate basic and diluted earnings per share for the year ended 31 December 2020