The following information is for Fresno Company.

Facts:

1.Net Income [which includes (net of tax) a discontinued gain

from operations of $80,000]$220,000

2.Capital Structure

a.$100 par, Cumulative 5% preferred stock

6,000 shares issued and outstanding$1,200,000

b.64,000 shares outstanding of $10 par common stock on January 1.

On April 1, 50,000 shares were issued for cash.

On October 1, 8,000 shares purchased and retired.$2,000,000

c.On January 2 of the current year, Fresno Company purchased

Forensic Corporation.

One of the terms of the purchase was that if ....... Forensic net income for the following year is $2,400 or more, ........50,000 additional shares would be issued to Forensic stockholders next year.

Forensic Corporation's net income for the current year was $2,600 which is properly included in the net income shown above..

3.Other:

a.Average market price per share for the common stock during entire ........year was $30.

b.Income tax rate for Fresno Company30%

Instructions

Compute: (a) Basic earnings per share

(b) diluted earnings per share.