The controller at Artic Gear Industries, a public company, is preparing the calculation for basic and diluted earnings per share and the related disclosure for Artic Gears financial statements. The following is selected financial information for the fiscal year end December 31, 2021.

Long term debt Notes payable, 5% $ 1,800,000 8% convertible bonds 9,000,000 10% bonds payable 7,200,000 Total long term debt $18,000,000 Shareholders Equity Preferred shares, convertible, $7,00 cumulative, 200,000 Shares authorized, 50,000 shares issued and Outstanding $2,750,000 Common shares, unlimited authorized, XXXXX shares issued and Outstanding 8,550,000 Contributed surplus conversion rights 450,000 Retained earnings 7,650,000 Total shareholders equity $19,400,000

The following transactions occurred at Artic Gear: Options were granted by the company to purchase 45,000 common shares at $18 per share. No options have been exercised and the average price of the common shares in 2021 was $27. The convertible, cumulative $7.00 preferred shares were issued in 2021 and are convertible into two common shares. The bonds were issued at face value. The 8% convertible bonds will convert into common shares at 70 shares per $1,000 bond. There are no preferred dividends in arrears, and preferred dividends were not declared in 2021. The following common share transactions occurred during the year. Jan 1 900,000 shares outstanding May 1 Issued 90,000 common shares June 30 Issued a 10% stock dividend September30 Acquired 27,000 common shares November 1 Issued 36,000 common shares Net income for fiscal year 2021 was $1,890,000 and the average income tax rate was 30%.

A)

Calculate basic and diluted earnings per share. Please rank your calculations for diluted earnings per share and present in table format from most to least dilutive.