21. Assume that the following data relative to Kane Company for 2018 is available:

Net Income $210,000

Transactions in Common Shares Change Cumulative

Jan. 1, 2018, Beginning number 700,000

Mar. 1, 2018, Purchase of treasury shares (60,000) 640,000

July 1, 2018, Stock split 2-1 640,000 1,280,000

Nov. 1, 2018, Issuance of shares 240,000 1,520,000

6% Cumulative Convertible Preferred Stock

Issued in 2017, at par, convertible into 200,000 shares of common

$1,000,000

Instructions

(a) Compute the basic earnings per share for 2018. (Round to the nearest penny.)

Computation of weighted average shares outstanding during the year:

(b) Compute the diluted earnings per share for 2018. (Round to the nearest penny.)