Basic and Diluted Earnings Per Share
Bloodhound Corp Instructions
A) Calculate Basic Earnings Per Share for 2020

Basic and diluted earnings per share
Bloodhound Corp. provides the following data for calendar 2020 $\begin{array}{lrr}\text { Net Income ................................................................................................................. } & &\$ 2,400,000 \\\text { Transactions in Common Shares } & \text { Change } & \text { Cumulative } \\\text { Jan 1\quad\quad beginning } & & 1,000,000 \\\text { Mar 1 \quad purchase of treasury shares } & (60,000) & 940,000 \\\text { Jun 1 \quad shares split 2 for 1 } & 940,000 & 1,880,000 \\\text { Nov 1 \quad is suance of new shares } & 120,000 & 2,000,000\end{array}$ $\begin{array}{lrr}\text{8\% Cumulative Convertible Preferred Shares (no par) } \\ \text{ Convertible into 200,000 common shares} \\ \quad\quad\text{ adjusted for split on June 1 } ............................................................... &\$ 1,000,000 \\\\\text{ Stock Options } \\\text{ Exercisable at the option price of \$ 25 per share. } \\ \text{ Average market price in 2020 was \$ 30 (market price } \\ \text{ and option price adjusted for split) } ......................................................&\text{ 60,000 shares } \\\end{array}$ Instructions
a) Calculate basic earnings per share for 2020.
b) Calculate diluted earnings per share for 2020.