Net Income$1,400,000
Transactions in Common Shares ChangeCumulative
Jan. 1, 2014, Beginning number500,000
Mar. 1, 2014, Purchase of treasury shares(60,000)440,000
June 1, 2014, Stock split 2-1440,000880,000
Nov. 1, 2014, Issuance of shares120,0001,000,000
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common;
Outstanding for all of 2014.$1,000,000
Stock Options
Exercisable at the option price of $25 per share. Average market price in 2014, $30. Outstanding for all of 2014.60,000 shares
REQUIRED:
Compute both basic and diluted earnings per share.