Question 2 (16 marks) Jamie Company had the following shareholders' equity as at 1 January 2019: 8% convertible cumulative preference shares, $10 par, 100,000 authorized, 60,000 shares issued and outstanding: 2 shares of preference shares are convertible into 3 shares of ordinary shares..... $600,000 Ordinary shares, $10 par, 500,000 shares authorized, 320,000 issued and 300,000 shares outstanding...... 3,200,000 Share premium - preference.. 60,000 Share premium - ordinary.. 840,000 $4,700,000 Retained earnings........... 700,000 $5,400,000 Less: Cost of treasury shares (20,000 shares).. 400,000 $5.000.000 Also outstanding at 31 December 2019 were: (1) Share options for 30,000 shares of ordinary shares were granted in 2018. The exercise price is $12 per share. The ordinary shares had an average market price of $16 during 2019. (2) On 1 January 2019, 5% convertible bonds were issued at par for $500,000. Each $1,000 bond is to be convertible into 80 shares of ordinary shares. Interest expense of $23,000 is recorded on the liability component of the bonds. (3) Number of ordinary shares outstanding during the entire 2019 was 360,000 shares. No bonds or preference shares were converted during 2019. Net income for year 2019 was $336,000 and the tax rate was 30% Required: Compute the basic and diluted earnings per share for year 2019. (Calculate to 2 decimal places)