Use the information provided to calculate basic and diluted earnings per share for the year 2020.

Net income for the year 2020 = $ 240,000

Weighted average of common shares outstanding for 2020 = 30,000

Cumulative preferred stock dividend = $ 60,000 per year. In 2020 the company did not declare dividends.

Bonds payable, convertible. Issued in 2016. They can be converted from the year 2022.

They are convertible to a total of 15,000 common shares. The interest expense on the bonds in 2020 was $ 60,000.

The effective income tax rate for 2020 = 25%.