NOTE 10. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods.


		Three Months Ended				Six Months Ended
	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Income Available to Common Shareholders:
Net Income Attributable to Consolidated-Tomoka Land Co.	$	3,678,908	$	1,570,443	$	16,425,300	$	2,995,161
Weighted Average Shares Outstanding		5,531,444		5,703,542		5,566,595		5,719,213
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		14,008		—		16,463		—
Total Shares Applicable to Diluted Earnings Per Share		5,545,452		5,703,542		5,583,058		5,719,213

Per Share Information:
Basic
Net Income Attributable to Consolidated-Tomoka Land Co.	$	0.67	$	0.28	$	2.95	$	0.52

Diluted
Net Income Attributable to Consolidated-Tomoka Land Co.	$	0.66	$	0.28	$	2.94	$	0.52

The effect of 70,000 and 81,250 potentially dilutive securities was not included for the three months ended June 30, 2017 and 2016, respectively, as the effect would be anti-dilutive. The effect of 77,750 and 25,000 potentially dilutive securities was not included for the six months ended June 30, 2017 and 2016, respectively, as the effect would be anti-dilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Convertible Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Convertible Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Convertible Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.79. The average price of our common stock during the three and six months ended June 30, 2017 and 2016 did not exceed the conversion price which resulted in no additional diluted outstanding shares.