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

NetIncome$2,100,000

Transactions in Common SharesChange

Jan. 1, 2018, Beginningnumber700,000

Mar. 1, 2018, Purchase of treasuryshares(60,000)

June 1, 2018, 10% Stockdividend64,000

Nov. 1, 2018, Issuance ofshares240,000

Stock Options (issued on 1/1/2018)

Exercisable at the option price of $25 per share. Average

market price in 2018, $30 (market price and option price

adjusted forsplit).90,000 shares

Instructions:

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

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