Assume that the following data relative to Eddy Company for 2015 is available:

Net Income $2,400,000

Transactions in Common Shares Change Cumulative

Jan. 1, 2015, Beginning number 600,000

Mar. 1, 2015, Purchase of treasury shares (60,000) 540,000

June 1, 2015, Stock split 2-1 440,000 1,080,000

Nov. 1, 2015, Issuance of shares 120,000 1,200,000

7% Cumulative Convertible Preferred Stock

Sold at par, convertible into 200,000 sharesof common (adjusted for split). $1,000,000

Stock Options

Exercisable at the option price of $25 pershare. Average market price in 2015, $30(market price and option price adjusted

for split). 60,000 shares

INSTRUCTIONS

(a) Compute the basic earnings per share for 2015. (Round to thenearest penny.)

(b) Compute the diluted earnings per share for 2015. (Roundto the nearest penny.)