The following information is for Solo Limited for 2020:

Net income for the year	$2,800,000
Common shares (600,000 shares outstanding)	5,000,000
6% convertible, cumulative preferred shares, $100 par value, with each share convertible into four common shares	3,500,000
Stock options (granted in a prior year) to purchase 60,000 common shares at $19 per share	750,000
10% convertible bonds issued at par ($1,000 per bond), with each bond convertible into 18 common shares	2,000,000
Tax rate for 2020	25%
Average market price of common shares	$22 per share

There were no changes during 2020 in the number of common shares, preferred shares, or convertible bonds outstanding. For simplicity, ignore the requirement to book the convertible bonds' equity portion separately.

Required:

1. Calculate basic earnings per share for 2020 (2 marks).
2. Calculate the individual dilutive effect of potentially dilutive items, and rank them (8 marks)

Calculate diluted earnings per share for 2020 (4 marks)