QUESTION $4(15$ MARKS$)$

Basic and diluted earnings per share

Bloodhound Corp. provides the following data for calendar $2023$

Net Income

Transactions in Common Shares

Jan $1$ beginning

Mar $1$ purchase of treasury shares

Jun $1$ shares split $2$ for $1$

Nov $1$ issuance of new shares

$8\%$ Cumulative Convertible Preferred Shares $($no par$)$

Convertible into $200,000$ common shares

adjusted for split on June $1.$

$$1,000,000$

Stock Options

Exercisable at the option price of $$25$ per share.

Average market price in $2023$ was $$30($market price

and option price adjusted for split$).$

$60,000$ shares

REQUIRED

a$)$ Calculate basic earnings per share for $2023.$

b$)$ Calculate diluted earnings per share for $2023.$