Hanson Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and HKD 1,000,000 of 10% convertible bonds outstanding during 2019. The preference shares are convertible into 40,000 ordinary shares. During 2019, Hanson paid dividends of HKD 1.20 per share on the ordinary shares and HKD 4 per share on the preference shares. Each HKD 1,000 bond is convertible into 45 ordinary shares. The net income for 2019 was HKD 800,000 and the income tax rate was 30%.

6. Basic earnings per share for 2019 is (rounded to the nearest penny)

A. HKD 2.94.

B. HKD 3.22.

C. HKD 3.35.

D. HKD 3.60.

7. Diluted earnings per share for 2019 is (rounded to the nearest penny)

A. HKD 2.77.

B. HKD 3.05

C. HKD 3.33.

D. HKD 3.55.