Basic and diluted earnings per share
Arlt Inc., a publicly accountable corporation, has a July 31 year end. For the 2020 fiscal year, there were 100,000 common shares outstanding all year. Net income for the year ended July 31, 2020 was $ 950,000. Their income tax rate is 30%.
Part A During the 2019 fiscal year, Arlt issued at par a 5% convertible bond, face value $ 5,000,000. Each $ 1,000 bond is convertible into 20 common shares. No bonds were converted in 2019, however, on March 31, 2020, 50% of the bonds were converted into common shares.
Part B On August 1, 2019, Arlt issued 100,000, $ 2, cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. On September 30, 2019, 20% of these preferred shares were converted to common shares. The preferred share dividend was declared and paid on June 15, 2020.
Instructions
Treating each part independently, calculate basic and diluted earnings per share for fiscal 2020.

Question

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The Answer of Basic and diluted earnings per share
Arlt Inc., a publicly accountable corporation, has a July 31 year end. For the 2020 fiscal year, there were 100,000 common shares outstanding all year. Net income for the year ended July 31, 2020 was $ 950,000. Their income tax rate is 30%.
Part A During the 2019 fiscal year, Arlt issued at par a 5% convertible bond, face value $ 5,000,000. Each $ 1,000 bond is convertible into 20 common shares. No bonds were converted in 2019, however, on March 31, 2020, 50% of the bonds were converted into common shares.
Part B On August 1, 2019, Arlt issued 100,000, $ 2, cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. On September 30, 2019, 20% of these preferred shares were converted to common shares. The preferred share dividend was declared and paid on June 15, 2020.
Instructions
Treating each part independently, calculate basic and diluted earnings per share for fiscal 2020.

Basic and Diluted Earnings Per Share