5、Assume that the following data relative to Kane Company for 2016 is available:

Net Income $2,100,000

| Transactions in Ordinary Shares | Change | Cumulative |
| --- | --- | --- |
| Jan. 1, 2016, Beginning number | | 700,000 |
| Mar. 1, 2016, Purchase of treasury shares | (60,000) | 640,000 |
| June 1, 2016, Share split 2-1 | 640,000 | 1,280,000 |
| Nov. 1, 2016, Issuance of shares | 120,000 | 1,400,000 |


8% Cumulative Convertible Preference Shares

Sold at par, convertible into 200,000 ordinary shares

(adjusted for split).

$1,000,000

Share Options

Exercisable at the option price of $25 per share. Average

market price in 2016, $30 (market price and option price

adjusted for split).

60,000 shares

Required: Compute the diluted earnings per share for 2016. (Round to the nearest penny.)