Net income 2,100,000

Transactions in common shares Change cumulative

jan 1 2018 beginning number of shares 700,000

march 1 2018, purchased treasury shares (60,000) 640,000

June 1 2018 Stock split 2-1 640,000 1,280,000

Nov 1 2018, Issuance of shares 240,000 1,520,000

6% Cumulative convertible Preferred stock

Sold at par, convertible in 200,000 shares of common

adjusted for split 1,000,000

Stock options

Exercisable at the option price of $25 per share. Average market

price in 2018, $30 ( market price and option price adjusted for split). 90,000 shares

1 Compute basic earnings per share for 2018. Round to the nearest penny. show calculations.