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Strauch Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During 2010, 100,000 shares of common stock were outstanding. In 2011, two distributions of additional common shares occurred: On April 1, 20,000 shares of treasury stock were sold, and on July 1, a 2-for-1 stock split was issued. Net income was $410,000 in 2011 and $350,000 in 2010.
What amounts should Strauch report as basic earnings per share in its 2011 and 2010 comparative income statements?
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