1. On December 31, 2021, Camille Company had outstanding 500,000 shares of common stock and 40,000 shares of 7% cumulative preferred stock (par $10). On March 31, 2022, Camille issued an additional 80,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2022. On October 1, 2022, Camille purchased 24,00 shares as treasury stock.

No dividends were declared in 2022. Net income was $800,000. The tax rate for the year was 25%. At year-end, there was fully vested incentive stock options outstanding for 40,000 shares of common stock (adjusted for the stock dividend). The exercise price was $12. The market price of the common stock was $15 per share on December 31, 2022, and averaged $20 per share during the year. Also outstanding were $1,000,000 face amount of 4% convertible bonds issued in 2019 and convertible into 50,000 common shares (adjusted for the stock dividend).

1. To calculate basic earnings per share for the year ended December 31, 2022

a. The amount included in the numerator will be _________

b. The amount included in the denominator will be __________

2. To calculate diluted earnings per share for the year ended December 31, 2022

a. The amount included in the numerator will be _________

b. The amount included in the denominator will be __________