Hobbit Corporation reported the following information for 2021:

Item	Amount
Net income	$889,000
Common shares outstanding	162,000
Cumulative preferred shares outstanding	89,000
Par value per preferred share	$10
Preferred share dividend rate	8%

No dividends were declared or paid on either the common or cumulative preferred stock during 2021.

What is Hobbit Corporations basic earnings per share for 2021, rounded to the nearest penny?

$5.49

$3.54

$5.05

$3.26

B)

On January 1, 2021, Matrix Co. purchased a depreciable asset for $260,000 with an estimated useful life of 13 years and no estimated salvage value. For financial reporting purposes, the asset is being depreciated using the straight-line method. For tax purposes, the double-declining-balance method is being used. Matrix Co.s tax rate is 28% for 2021 and all future years.

At the end of 2021, which of the following deferred tax accounts and balances should be reported on Matrix Co.s balance sheet?

Deferred tax asset: $20,000

Deferred tax liability: $20,000

Deferred tax asset: $5,600

Deferred tax liability: $5,600