Audrey Inc. has 1 million common shares outstanding as at January 1, 2023. On June 30, 2023, 4% convertible bonds were converted into 100,000 additional shares. Up to that point, the bonds had paid interest of $250,000 after tax. Net income for the year was $1,298,678. During the year, the company issued the following:

1. June 30: 10,000 call options giving holders the right to purchase shares of the company for $30.

2. September 30: 15,000 put options allowing holders to sell shares of the company for $25

On February 1, Audrey also purchased in the open market 10,000 call options on its own shares, allowing it to purchase its own shares for $27. Assume the average market price for the shares during the year was $35.

Instructions

a. Calculate the weighted average number of common shares outstanding as at December 31, 2023.

b. Calculate the required EPS numbers under IFRS. Round to the nearest cent. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security.

c. Show the required presentations on the face of the income statement.