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PUZZLE 10.1 BASIC EARNING PER SHARE Entity A has a profit after tax of $15 million for the year ended December 31, 20X2. These appropriations of profit have not been included in this amount: $m (1) Arrears of cumulative preference dividend for 2 years ended December 31,20X2 4 (2) Ordinary dividends 5 (3) Preference share premium payable on redemptionappropriation of profit 1 (4) Exceptional profit (net of tax) 4 These share transactions occurred during the year ended December 31, 20X2. The entity had 3 million ordinary shares of $1 outstanding at January 1, 20X2: DATE Ordinary shares Details issued/purchased January 1 250,000 Issued at $5 per share - $1 paid to date: entitled to participate in dividends to the extent paid up April 1 600,000 Full market price $3 per share issue July 1 (400,000) Purchase of own shares at $3.5 per share Required Calculate basic earnings per share