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1- Assume that the following data relative to Rice Company for 2020 is available Net Income $3,984,000: Transactions...

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Accounting

1- Assume that the following data relative to Rice Company for2020 is available

Net Income $3,984,000:

Transactions in Common Shares Change Cumulative

Jan. 1,2020 Beginning number 650,000

Apr. 1,2020 Purchase of treasury shares (50,000) 600,000

June 1,2020 100% stock dividend 600,000 1,200,000

Dec 1,2020 Issuance of shares 200,000 1,400,000

5% Cumulative Preferred Stock:

$1,000,000 sold at par on January  1,2020 convertibleinto 200,000 shares of common stock

Stock options:

Exercisable at the option of $30 per share. Average market pricein 2020, $35 and there were 60,000 options outstanding since2017.

(A) compute the basic earnings per share for 2020. (round to thenearest penny)

(B) compute the diluted earnings per share for 2020. (round tothe nearest penny)

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