Solomon Ltd. is a public company that trades on the Toronto stock exchange. At December 31, 2020, Solomon Ltd had the following financial instruments outstanding and reflected in the annual financial statements.

1. 412,000 stock options, entitling option holders to purchase 2 common shares for each option held at $1 per share ; options exercisable beginning January 1, 2024.
2. $60 Million, 15 year convertible debentures issued at par; interest at 3% per annum payable annually 31st December. Each $2,000 debenture is convertible into 120 common shares.

Solomon Ltd. has a 2020 income tax rate of 40% and a 2020 average common share price of $8.

REQUIRED:

Assume that the above securities are dilutive. Indicate (with supporting calculations) their effect on earnings available and number of shares, in calculating diluted earnings per share.