The capital structure of ASIA Corporation as at 31 December 20x5 is as follows:

Additional information

(a) ASIA Corporation reported net profit after tax of $2,800,000 for the year ended 31 December 20x5.

(b) The preference shares, which were issued several years ago, were convertible into ordinary shares in the ratio of five ordinary shares for every two convertible preference shares. The conversion ratio was to be adjusted for any bonus or rights issue.

(c) On 1 July 20x5, ASIA Corporation declared a bonus issue of one bonus share for every two ordinary shares held.

(d) Preference dividends, which were tax-exempt, were paid at the end of each quarter.

(e) On 1 October 20x5, the holders of 40% of the convertible preference shares converted their preference shares into ordinary shares.

Required
1. Calculate the basic and diluted earnings per share of ASIA Corporation for 20x5.
2. For the year ended 31 December 20x4, ASIA Corporation reported net profit after tax of $2,500,000. Calculate the basic and diluted earnings per share for 20x4.

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Ordinary share capital (10,000,000 shares).. 4.8% convertible preference shares (300,000 shares)... $10,000,000 3,000,000