The following 2021 information is for Stockton Company::

Facts:

Net Income$2,100,000

Transactions in Common SharesChange

Jan. 1,21, Share Numbers800,000

Mar. 1, 21,Treasury shares purchased(10,000)

June 1, 21, Split of stock640,000

Nov. 1, 21, New Issuance of shares480,000

Cumulative Shares

Jan 1, 2021800,000

Mar. 1, 2021790,000

June 1, 20211,430,000

Nov. 1, 20211,910,000

6% Convertible Preferred Preferred Stock - Cumulative:

Purchased at par, convertible into common shares of Stockton

Company - 200,000 shares - (adjusted for split).$1,000,000

Exercisable Stock Options:

With the option price of $25.00 per share.

Exercised at an option price of $25 per.

Adjusted for split: market price and option price.

Average market price was $30

90,000 shares

Instructions

(a)Compute the basic earnings per share for 2021. (Round to the nearest penny.)

(b)Compute the diluted earnings per share for 2021. (Round to the nearest penny.)