1) Boston Co. had net income for 2021 of $500,000. The average number of shares outstanding for the period was 100,000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 5,000 shares. The average market price of the common stock during the year was $40. What should Boston Co. report for diluted earnings per share for the year ended 2021?

2) Albany Corp. earned net income of $500,000 in 2021 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 8% bonds, which are convertible into 20,000 shares of common. Albanys tax rate is 30%. Compute Albanys 2021 diluted earnings per share.