On December 31,2015,Jackson Company Had 100,000 Shares of Common Stock

Essay

On December 31,2015,Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%,$50 par,cumulative preferred stock outstanding.On February 28,2016,Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share.Jackson sold 6,000 of the treasury shares on September 30,2016,for $47 per share.Net income for 2016 was $180,905.Also outstanding at December 31,2015,were fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40.These stock options were exercised on November 1,2016.The market price of the common shares averaged $50 during 2016.
Required:
Compute Jackson's basic and diluted earnings per share (rounded to 2 decimal places)for 2016.