Question

Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,760,000...

Assume that the following data relative to Kane Company for 2018 is available:

Net Income $2,760,000
Transactions in Common Shares Change Cumulative
Jan. 1, 2018, Beginning number 720,000
Mar. 1, 2018, Purchase of treasury shares (61,200) 658,800
June 1, 2018, Stock split 2-1 658,800 1,317,600
Nov. 1, 2018, Issuance of shares 240,000 1,557,600
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 210,000 shares of common (adjusted for split). $1,050,000
Stock Options
Exercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split). 99,000 shares

1- Compute weighted average shares outstanding for 2018.

Weighted average shares outstanding

2- Compute the basic earnings per share for 2018.

Basic Earnings per share $

3- Compute the diluted earnings per share for 2018.

Diluted earnings per share $
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