The Burken Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During year 10, 100,000 shares of common stock were outstanding. In year 11, two distributions of additional common shares occurred: On April 1, 20,000 shares of treasury stock were sold, and on July 1, a 2-for-1 stock split was issued. Net income was $ 410,000 in year 11 and $ 350,000 in year 10. What amounts should Burken report as earnings per share in its year 11 and year 10 comparative income statements?
Year 11 Year 10
a. $ 1.78………………………..$ 3.50
b. $ 2.34………………………..$ 3.50
c. $ 2.34………………………..$ 1.75
d. $ 1.78……………………….. $ 1.75