The following companies have their financial year ended on 31 December 2021. 1. Entity 1 has 1,000,000 ordinary shares at £1 each as of 1 January 2021. On 1 April 2021, the company issued 250,000 ordinary shares at £3 each. On 1 October 2021, the company issued 150,000 bonus shares, utilizing the share premium account for the issue. The profit after tax for the year is £469,500 before the following adjustments: 

(i) A depreciation expense of £350,000 has been included in the above profit after tax. A capital (tax) allowance of £400,000 is to be obtained for 2021. The tax rate for Entity 1 is 25%. The company provides full deferred tax for any timing differences.

(ii) The final preference dividend of £50,000 is yet to be paid and needed to be accounted for. 

(iii) Profit after tax attributable to non-controlling interest is £145,000. A share option scheme has been offered to employees. On 31 December 2021, there are 100,000 options outstanding. Each option has a right to purchase one share at £3. The average share price of Entity 1 is £5 in 2021. 

Required

Determine the basic and diluted earnings per share for Entity 1 for the year ended 31 December 2021. Show all relevant workings.