Question 3 (23 marks) Peach Limited's main business is the sales of canned peaches. Its about Peach Limited. financial year end was 31 December. The following information is given In the annual report for the year 2017, the notes of accounts showed the share structure as follows: Number of shares issued S000 Ordinary shares 12% Convertible preference shares (000) 25,000 1,500 25,000 1500 26,500 Peach Limited issued 12% convertible cumulative preference shares on 1 January 2015. Every two preference shares can be convertible to one ordinary share. No preference shares have been converted into ordinary shares. There were no preference dividends in arrears in 2017. Peach Limited issued 8,000,000 price on 1 April 2017 ordinary shares at market 2 The net profit for the year 2018 was $9,000,000 3 On 1 January 2018, Peach Limited issued $4,000,000 of 15% convertible loan stock. Each $400 loan stock is convertible to 80 ordinary shares. 4 Peach Limited operated an option grant' programme as a bonus payment for employees with good performance. The options granted could be used by the employees to subscribe for the ordinary shares issued by Peach Limited. Owing to the good performance of Peach Limited in the year 2017, Peach Limited granted 2,000,000 options on 1 January 2018 to employees who performed well. Each option granted the option-holders the right to subscribe one ordinary share with the exercise price of $4.0. On 1 July 2018, all 2,000,000 options were exercised. 5 The average share price of an ordinary share was S5 per share during 2018 6 The tax rate for the year 2015 was 15%. Required: a Determine the basic carnings per share for the year ended 31 December 2018 according to HKAS 33 Earnings Per Share (6 marks) b Determine the diluted earnings per share for the year ended 31 December 2018 according to HKAS 33 Earnings Per Share. (17 marks)