XYZ Corporation is a forward$-$thinking technology firm specializing in the creation and

manufacturing of advanced electronic components. These components find their application

across consumer electronics, automotive industries, and industrial machinery.

Below are some elements from Financial reporting and on Share Capital Transactions in $2024.$

Assume the company uses IFRS.

Share Transactions during the Year $2024$:

January $1-$ Beginning Balance: $200,000$ shares

March $1-$ New share issue: $150,000$ shares

June $1-$ Three$-$for$-$one stock split

September $1-$ New share issue: $450,000$ shares

November $1-$ Treasury stock acquisition: $(90,000)$ shares

XYZ Corporation reported an income from continuing operations of $$2,500,000$ and a $$500,000$

loss from discontinued operations, net of tax, for the year $2024.$ The company is subject to a $35\%$

tax rate. Additional details for the exercise:

The company issued $100,000$ employee options on January $1,$ allowing employees to

acquire common shares at $$20$ per share.

$50,000$ options were issued to management, each allowing the holder to sell one common

share back to the company at $$30$ per share.

The average market price of the company's common shares is $$25$ per share $($before the

stock split adjustment$).$

XYZ has $$600,000$ of $2\mathrm{.}5\%$ convertible debt outstanding as of the beginning of the year,

with each $$1,000$ bond convertible into $10$ shares of common stock.

XYZ has $$200,000$ par value, $5\%$ cumulative convertible preferred shares outstanding for

the year. These shares can convert into $15,000$ shares of common stock. There are $2$ years

of dividends in arrears $(2022$ and $2023).$ The company declared and paid dividends of

$$30,000$ on these preferred shares in $2024.$

There were no actual conversions or exercises of options during the year.

Note to Students:

Remember to adjust number of converted shares, stock prices and exercise prices for the

stock split

Prepare a table to calculate the diluted earnings per share for $2024.$ Present your

computations in a clearly formatted statement.

Prepare a Partial Income Statement with all EPS required disclosure.