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A20-14 Basic and Diluted EPS The following information relates to Willowdale Ltd.s financial statements for...

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Accounting

A20-14 Basic and Diluted EPS

The following information relates to Willowdale Ltd.s financial statements for the year ended 31 December 20X6:

a. On 1 January 20X6, Willowdales capital structure consisted of the following:

450,000 common shares, issued for $5.75 million, were outstanding.
50,000 preferred shares bearing cumulative dividend rights of $5 per year.
$1 million (par value) of 5% convertible bonds ($1,000 face value), with interest payable on 30 June and 31 December of each year. Each $1,000 bond is convertible into 65 common shares, at the option of the holder, at any time before 31 December 20X1. Interest expensed on the convertible bonds was $80,000.
Outstanding options for 50,000 common shares at a price of $5 per share. The average market value of common shares during the period was $20.

b. On 30 September 20X6, Willowdale issued an additional 100,000 common shares for $1.5 million cash. c. Willowdale reported earnings of $1.5 million for the year ended 31 December 20X6 net of tax of 25%.

Required: Calculate the basic and diluted earnings per share figures for 20X6

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