8.20 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.

8.21 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

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

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