1. Compute weighted average shares outstanding for 2018.

2. Compute the basic earnings per share for 2018.

3. Compute the diluted earnings per share for 2018.

Assume that the following data relative to Kane Company for 2018 is available: 2018 Net Income Transactions in Common Shares Jan. 1, 2018, Beginning number Mar. 1, 2018, Purchase of treasury shares June 1, 2018, Stock split 2-1 Nov. 1, 2018, Issuance of shares 6% cumulative Convertible Preferred Stock sold at par, convertible into 200,000 shares of common (adjusted for split). Stock options Exercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split) $2,900,000 Change Cumulative 710,000 (58,200) 651,800 651,800 1,303,600 240,000 1,543,600 $1,000,000 90,000 shares