I need help with the question in the picture. Assume that the following data relative to Oregan Company for 2020 is available:Net Income$2,100,000Transactions in Common SharesChangeCumulativeJan. 1, 2020, Beginning number700,000Mar. 1, 2020, Purchase of treasury shares(60,000)640,000June 1, 2020, 50% Stock Dividend320,000960,000Nov. 1, 2020, Issuance of shares240,0001,200,0006% Cumulative Convertible Preferred StockSold at par on January 1, 2020, convertible into 200,000 shares of common$1,000,000Stock OptionsExercisable at the option price of $25 per share. Average market price in 2020, $30 and 90,000 options outstanding since 2019Instructions(a) Compute the basic earnings per share for 2020. (Round to the nearest penny.)(b) Compute the diluted earnings per share for 2020. (Round to the nearest penny.)

Earnings per share: Earnings per share, commonly noted as EPS is the net earnings available for…

Assume that the following data relative to Oregan Company for 2020 is available: Net Income $2,100,000 Transactions in Common Shares Change Cumulative Jan. 1, 2020, Beginning number 700,000 Mar. 1, 2020, Purchase of treasury shares (60,000) 640,000 June 1, 2020, 50% Stock Dividend Nov. 1, 2020, Issuance of shares 6% Cumulative Convertible Preferred Stock 320,000 960,000 240,000 1,200,000 Sold at par on January 1, 2020, convertible into 200,000 shares of common $1,000,000 Stock Options Exercisable at the option price of $25 per share. Average market price in 2020, $30 and 90,000 options outstanding since 2019 Instructions (a) Compute the basic earnings per share for 2020. (Round to the nearest penny.) (b) Compute the diluted earnings per share for 2020. (Round to the nearest penny.)