there is $1,000,000 in preferred stock

40. Basic and diluted EPS. Assume that the following data relative to Kanc Company for 2018 is available: Net Income $2,100,00 Change Transactions in Common Shares Jan 1, 2018, Beginning number Mar. 1, 2018, Purchase of treasury shares June 1, 2018, Stock split 2-1 Nov. 1, 2018, Issuance of shares (60,000) 640,000 240,000 Cumulati 700,00 640,00 1,280,00 1,520,00 I 6% Cumulative Convertible Preferred Stock Sold at par, convertible into 200,000 shares of common (adjusted for split). $1,00 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). 90,000 Instructions (a) Compute the basic earnings per share for 2018. (Round to the nearest penny) (b) Compute the diluted earnings per share for 2018. (Round to the nearest penny.)