Acct 202

Part 2: Answer the following problems in the space provided. You may use a calculator but no cell phones. Assume that the following data relative to Kane Company for 2021 is available: Net Income $2,100,000 Change Transactions in Common Shares: Jan. 1, 2021, Beginning number Mar. 1, 2021, Purchase of treasury shares June 1, 2021, Stock split 2-1 Nov. 1, 2021, Issuance of shares (60,000) 640,000 240,000 Cumulative 700,000 640,000 1,280,000 1,520,000 6% Cumulative Convertible Preferred Stock: Sold at par, convertible into 200,000 shares of common (already adjusted for split). $1,000,000 Stock Options: Exercisable at the option price of $25 per share. Average market price in 2021, $30 (market price and option price adjusted for split). 90,000 shares Required: 1.) Compute the basic earnings per share for 2021. (Round to the nearest penny.) 2.) Compute the diluted earnings per share for 2021. (Round to the nearest penny.)