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On January 1, 2021, Tonge Industries had outstanding 620,000 common shares ($1 par) that originally sold for $20 per share, and 7,000 shares of 10%
On January 1, 2021, Tonge Industries had outstanding 620,000 common shares ($1 par) that originally sold for $20 per share, and 7,000 shares of 10% cumulative preferred stock ($100 par), convertible into 70,000 common shares. On October 1, 2021, Tonge sold and issued an additional 20,000 shares of common stock at $38. At December 31, 2021, there were 27,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 27,000 shares of common stock at an exercise price of $35. The market price of the common stock at year-end was $53. During the year, the price of the common shares had averaged $45. Net income was $760,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in thousands.) Numerator Earnings per share Basic Diluted 1 Denominator II i = = =
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