Reference no: EM132935544

For Year 8, Westmount Corp. had 200,000 common shares outstanding for the full year. Westmount follows IFRS. Market prices of the common shares during Year 8 were:

January 1: $45; Year's average: $50; December 31: $52.

Westmount's income tax rate is 30%.

During Year 8, there were:

• 30,000 outstanding options to buy common shares at $40 a share;
• 20,000, $7, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares;
• $2,000,000 of 8% convertible bonds issued at par. Each $1,000 bond is convertible into 20 common shares.
• The corporation reported $750,000 net income for calendar Year 8.

Instructions

Problem 1: Calculate basic and diluted earnings per share for Year 8.