Assume that the following data relative to Kane Company for 2013 is available:
Net Income $2,100,000
Transactions in Common Shares Change Cumulative
Jan. 1, 2013, Beginning number 700,000
Mar. 1, 2013, Purchase of treasury shares (60,000) 640,000
June 1, 2013, Stock split 2-1 640,000 1,280,000
Nov. 1, 2013, Issuance of shares 180,000 1,460,000
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common
(adjusted for split). $1,000,000
Instructions
(a) compute average number of shares outstanding for 2013.
(b) Compute the basic earnings per share for 2013. (Round to the nearest penny.)