Reference no: EM133025123

Question - On April 1,2020 the balance sheet of Allan Limited included the following instruments:

$4,000,000 of 8% bonds due October 20, 2020 , convertible into 20 shares per $500 bond. The bonds were originally issued at par.

300,000 cumulative preferred shares with a dividend at 5%

600,000 common shares carried at $3,490,000

The following additional information is available about years 2020/2021:

On May 30, 2020 Allan Limited issued 30,000 common shares, and options on an additional 5,000 shares to the owner of a small supplier that Allan Limited purchased strategically. At that point, the shares were trading at $23/share. The options have a strike price of $25.

Allan Limited reported net income after taxes at 35% of $438,500 and reports under IFRS.

At year end, Allan Limited declared a 5%stock dividend on the common shares, and a cash dividend on the preferred shares. At that point, the common shares were trading at $22. Through the year, the shares traded at an average price of $21.

Required - Calculate Allan Limited's Basic EPS for the year ended March 31, 2021.