Question: On December 3 1 , 2 0 2 2 , Tea Company had 1 0 0 , 0 0 0 shares of common stock outstanding

On December 31,2022, Tea Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $100 par, cumulative preferred stock outstanding. On February 28,2023, Tea purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Tea sold 6,000 of the treasury shares on September 30,2023, for $47 per share. Net income for 2023 was $540,000. The income tax rate is 40%.
Compute basic earnings per share (rounded to 2 decimal places) for Tea Company for 2023.

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