Ivanhoe Company has $1,180,000 in assets and $1,180,000 in stockholders equity, with 41,100 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $118,000. On January 1, 2017, it issued $393,000 in debt at 6% and immediately repurchased 20,550 shares for $393,000. Management expected that, had it not issued the debt, it would have had net income of $118,000 in 2017.

(a) Determine the companys net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations.)