In 2018, TC Ash Inc.’s net income was $150,000. Ash had 100,000 ordinary shares outstanding at year-end. There were two ordinary share transactions during the year: 

(i) Ash declared and distributed a two-for-one stock split on March 1, 2018; and 

(ii) Option C was exercised on April 1, 2018. Details of Ash’s stock option plans follow:

■ Option A entitles employees to purchase 10,000 ordinary shares for $15 each. This option was granted during 2017 and expires in 2020. 

■ Option B entitles employees to purchase 10,000 ordinary shares for $25 each. This option was granted on July 1, 2018, and expires in 2021. 

■ Option C entitles employees to purchase 10,000 ordinary shares for $18 each. This option was granted during 2016 and was exercised on April 1, 2018. 

■ Option D entitles employees to purchase 10,000 ordinary shares for $16 each. This option was granted on September 1, 2018, and expires in 2021. 

The average market price of Ash’s ordinary shares for the year is $20. Ash does not have any preferred shares or convertible bonds outstanding. The recorded exercise prices and number of shares that can be acquired under the stock option plans have already been adjusted for the stock split. 

Required:

a. Calculate Ash’s basic earnings per share for the year ended December 31, 2018. 

b. Calculate Ash’s diluted earnings per share for the year ended December 31, 2018.