Basic and Diluted Earnings Per Share
Aria Ltd Instructions
Calculate Basic and Diluted Earnings Per Share for 2020

Basic and diluted earnings per share
Aria Ltd. provides the following information for calendar 2020 $\begin{array}{llr}\text{ Net income }& \$ 420,000 \\\text{ 2. Capital Structure }\\\quad\text{ a) \$ 8 preferred shares, no par value, cumulative, } & \$ 600,000 \\\quad\quad\quad\text{ 6,000 shares outstanding } \\ \quad\quad\quad\text{ No dividends were declared during 2020. } \\ \quad\text{ b) Common shares, 76,000 shares outstanding on January 1. }\\\quad\quad\quad\text{ On April 1, 40,000 shares were is sued for cash } . \\ \quad\quad\quad\text{ On October 1, 16,000 shares were purchased and retired. } &\$ 1,000,000 \\\quad\text{ c) On January 2, 2019, Ar ia purchased Apso Corporation. } \\\quad\quad\quad\text{ One of the terms of the purchase was that if Aria's net income for 2019 or } \\ \quad\quad\quad\text{ subsequent years is \$ 400,000 or more, 50,000 additional common shares would } \\\quad\quad\quad\text{ be issuedto Aoso shareholders. } \end{array}$

Instructions
Calculate basic and diluted earnings per share for 2020.