Headland Company's net income for 2025 is $619,000, and 82,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 23,000 executive stock options issued during 2024, each exercisable for one share at $20.50; none of these have been exercised. The average market price of Headland's stock during 2025 was $26. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2025, with an exercise price of $27 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $29.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $

Headland Company's net income for 2025 is $619,000, and 82,000 shares of common stock were issued and outstanding during 2025 . The only potentially dilutive securities outstanding were 23,000 executive stock options issued during 2024 , each exercisable for one share at $20,50; none of these have been exercised. The average market price of Headland s stock during 2025 was $26 (a) Compute diluted earnings per share, (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share (b) Assume the same facts as those assumed for part (a), except that 10,000 additional ogtions were issued on October 1, 2025, with an evercise price of $27 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $29.50. (Round answer to 2 decimal places, es. 2.55) Diluted earnings per share