Question
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 27,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 27,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 14,000 shares of common stock on the open market as treasury stock paying $30 per share. Brisbane sold 5,000 treasury shares on September 30, 2021, for $35 per share. Net income for 2021 was $170,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 40,000 common shares at $30. The market price of the common shares averaged $40 during 2021. Required: Compute Brisbane's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
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