On january 1, 2018, shamu corporation had 100,000 shares of common stock outstanding. the following transactions occurred during 2018:
march 1: reacquired 3,800 shares, accounted for as treasury stock.
september 30: sold all the treasury shares.
december 1: sold 12,800 new shares for cash.
december 31: reported a net income of $206,500.
the following transactions occurred during 2019:
january 10: declared and issued a 30% stock dividend.
december 31: reported a net income of $276,800.
required:
calculate shamu's basic earnings per share for both years for presentation in comparative financial statements that will be prepared at the end of 2019.