soundscriber co. is a publicly owned company with its common stock traded on the nyse. the following information is provided.

. there are 1000 preferred shares outstanding and no convertible debt securities.

. at the beginning of the year, soundscriber had 1000000 shares of common stock outstanding.

. On June 30, the company purchased 175,000 shares of its common stock as treasury shares, paying 15 per share

.On December 31, the company issued 10,000 shares of treasury stock to a vendor in exchange for a machine. the fair value of the machine was 160,000.

. preferred dividends were 50,000 for the year.

.net income for the year was 1,175,000.

part A.

calculate basic earnings per share for the year. Calculate to three decimals.

part B.

you also learned that during the year, soundscriber had 35,000 stock options outstanding. the options were vested and permitted the employees to purchase soundscriber common stock for 11 per share. assume that soundscriber stock was selling for 25 per share throughout the year.

calculate diluted earnings per share for the year.

carry to three decimals.