The following information is available for Smokey Smith Inc. for the preparation of its December 31, 2020, financial statements:

Number of common shares outstanding ..........................................................           250,000

Number of preferred shares outstanding .........................................................             50,000

Dividends declared, common ..............................................................................    $    450,600

Dividends declared, preferred .............................................................................    $    300,000

Income before taxes .............................................................................................    $ 2,107,000

Income tax expense ..............................................................................................    $    330,000

Other comprehensive income (loss) ...................................................................    $      19,000

Retained earnings, January 1, 2020 .....................................................................    $ 4,262,000

Accumulated other comprehensive income (loss), January 1, 2020 ................    $    (17,000)

Share capital, common shares, January 1, 2020 ................................................    $25,000,000

Share capital, preferred shares, January 1, 2020 ...............................................    $     825,000

Smokey Smith did not issue or buy back any shares during the year.

Required

a. Prepare the statement of changes in shareholders’ equity for the year ended December 31, 2020. 

b. Determine the earnings per share for Smokey Smith Inc.