1.Davis Designs, Inc. had net income for the year ended December 31, 20X4, of $360,000 and 200,000 shares of common stock were outstanding on December 31, 20X4. These shares were issued several years ago. There was no preferred stock. Calculate basic earnings per share.

2.Davis Designs, Inc. had net income for the year ended December 31, 20X4, of $360,000 and 200,000 shares of common stock were outstanding on December 31, 20X4. The year-end outstanding shares were the result of the following: Common shares outstanding on January 1, 20X4 .................................... 140,000

Common shares issued for cash at market value on May 1, 20X4 ............... 60,000

Number of common shares outstanding through December 31, 20X4 ......... 200,000

There was no preferred stock. Calculate basic earnings per share.