Reference no: EM132543944

Katrina Company reported the following information at the end of reporting period:

Bonds payable- 10% 1,500,000

Preference share capital, 12% cumulative, 100 par, 30,000 shares 3,000,000

Ordinary share capital, 100,000 shares, 50 par 5,000,000

• The bonds are convertible into ordinary shares in the ratio of 20 ordinary share for every 1,000 bond.
• The preference share is convertible into ordinary share in the ratio of two ordinary share in the ratio of two ordinary shares for one preference share.
• The net income for the year was 3,695,000 and the income tax rate 30%

Required

Question 1. basic earnings per share

Question 2. diluted earnings per share