Boxollie Company had 150,000 shares of common stock outstanding at January 1, 2014. On March 31, 2014, an additional 36,000 shares were issued for cash. Boxollie also had $12,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 120,000 shares of common stock. Net income for the year was $1,050,000. The tax rate is 35%.
Instructions:
Compute basic and diluted earnings per share (rounded to 2 decimal places) for the year ended December 31, 2014.