Leeds Corp. (Leeds) had 700,000 common shares and 20,000 noncumulative preferred shares outstanding at January 1, 2021.

Additional information is as follows:

• On September 1, 2021, Leeds issued 100,000 additional common shares.
• Net income for 2021 was $1,700,000.
• During 2021, Leeds declared and paid preferred dividends of $5 per share.
• Leeds is subject to tax at a rate of 40%.
• Throughout 2021, the average market price for each common share of Leeds was

$52.

Required:

Calculate the basic earnings per share for Leeds for the year ended December 31, 2021. (2.5 marks)