Calculating and Interpreting EPS Information Wells Fargo reports the following information in its 2015 Form 10-K.

????n millions 2015 2014 Wells Fargo net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,894 $23,057 Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,424 $ 1,236 Common stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,400 $ 6,908 Average common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,136.5 5,237.2 Diluted average common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 5,209.8 5,324.4

a. Determine Wells Fargo’s basic EPS for fiscal 2015 and for fiscal 2014.

b. Compare the number of common shares outstanding used for the 2015 Basic and Diluted EPS ratios.

Provide three examples that explain why the two numbers differ.