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

Net Income$2,700,000Transactions in Common SharesChangeCumulativeJan. 1, 2018, Beginning number650,000Mar. 1, 2018, Purchase of treasury shares(48,000)602,000June 1, 2018, Stock split 2-1602,0001,204,000Nov. 1, 2018, Issuance of shares204,0001,408,0006% Cumulative Convertible Preferred Stock

Sold at par, convertible into180,000shares of common (adjusted for split).$900,000Stock OptionsExercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split).75,000shares

Part 1

Compute weighted average shares outstanding for 2018.

Compute the basic earnings per share for 2018.(

Compute the diluted earnings per share for 2018.