On December 31, 2017, Jasper Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $100 par, cumulative preferred stock outstanding.
The following transactions occurred during 2018:
February 28, 2018 - purchased 24,000 shares of common stock as treasury stock paying $45 per share.
September 30, 2018 - sold 6,000 of the treasury shares for $47 per share.
Net income for 2018 was $540,000.
The income tax rate is 40%.
Also outstanding at December 31, 2017:
Fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2018.
Five thousand 6% bonds were issued at par on January 1, 2018. Each $1,000 bond is convertible into 125 shares of common stock. None of the bonds had been converted by December 31, 2018, and no stock options were exercised during the year.
Required:
Compute Jasper's 2018 basic and diluted earnings per share (rounded to 2 decimal points)