The information below pertains to Barkley Company for 2015.

There were no changes during 2015 in the number of ordinary shares, preference shares, or convertible bonds outstanding. There are no treasury shares. The company also has ordinary share options (granted in a prior year) to purchase 75,000 ordinary shares at £20 per share.
Instructions

(a) Compute basic earnings per share for 2015.

(b) Compute diluted earnings per share for 2015.

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Net income for the year 1,200,000 8% convertible bonds issued at par (1,000 per bond); each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is 1,800,000 based on a market rate of 9% 2,000,000 6% convertible, cumulative preference shares, 100 par value; each share is convertible into 3 shares of ordinary shares Ordinary shares, 10 par value Tax rate for 2015 Average market price of ordinary shares 4,000,000 6,000,000 40% 25 per share