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Bayou Energy Inc. had 200,000 shares of common stock outstanding at the end of 2016. Bayou Energy also had 10,000 shares of 6%, $50 par non-convertible preferred stock outstanding throughout the year. During 2017, the following transactions on common stock took place.

Mar. 1, 2017, Issued of 28,000 shares

June 1, 2017, Stock split 3 for 1

October 1, 2017, Issued 96,000 shares

December 1, 2017, Purchased 54,000 shares to be held in treasury

In addition, Bayou Energy has the following stock option, which is only potentially dilutive security:

Stock option: Exercise price on stock option is $15 per share. Average market price in 2017 was $50 (market price and exercise price adjusted for split). Total number of options is 36,000 shares.

Bayou Energy declared the required preferred stock dividend during the year. Net income for the year was $1,078,040. Bayous fiscal year ends December 31.

Compute the basic earnings per share for 2017. (Round to the nearest penny.)

Weighted average shares outstanding during the year for Basic EPS:

Period	Fraction of Year	Shares	Restatement for stock split	W. Avg. Shares

Basic EPS =

Compute the diluted earnings per share for 2017. (Round to the nearest penny.)

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