Charles Austin of the controllers office of Cullumber Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below.

1.		The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31, 2017, 2,000,000 shares had been issued and were outstanding.
2.		The per share market prices of the common stock on selected dates were as follows.

		Price per Share
July 1, 2017		$20.00
January 1, 2018		21.00
April 1, 2018		25.00
July 1, 2018		11.00
August 1, 2018		10.50
November 1, 2018		9.00
December 31, 2018		10.00

3.		A total of 703,200 shares of an authorized 1,176,000 shares of convertible preferred stock had been issued on July 1, 2017. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30.
4.		Cullumber Corporation is subject to a 40% income tax rate.
5.		The after-tax net income for the year ended December 31, 2018, was $11,860,000.

The following specific activities took place during 2018.

1.		January 1A 5% common stock dividend was issued. The dividend had been declared on December 1, 2017, to all stockholders of record on December 29, 2017.
2.		April 1A total of 414,000 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2018.
3.		July 1A 2-for-1 split of the common stock became effective on this date. The board of directors had authorized the split on June 1.
4.		August 1A total of 277,200 shares of common stock were issued to acquire a factory building.
5.		November 1A total of 21,600 shares of common stock were purchased on the open market at $9.00 per share. These shares were to be held as treasury stock and were still in the treasury as of December 31, 2018.
6.		Common stock cash dividendsCash dividends to common stockholders were declared and paid as follows.
		April 15$0.30 per share
		October 15$0.20 per share
7.		Preferred stock cash dividendsCash dividends to preferred stockholders were declared and paid as scheduled.

The following transactions have also occurred at Tamarisk.

1.		Options were granted on July 1, 2016, to purchase 190,000 shares at $14 per share. Although no options were exercised during fiscal year 2017, the average price per common share during fiscal year 2017 was $20 per share.
2.		Each bond was issued at face value. The 7% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2016.
3.		The preferred stock was issued in 2016.
4.		There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2017.
5.		The 990,000 shares of common stock were outstanding for the entire 2017 fiscal year.
6.		Net income for fiscal year 2017 was $1,480,000, and the average income tax rate is 40%.

For the fiscal year ended June 30, 2017, calculate the following for Tamarisk Pharmaceutical Industries.