5? [in June 1, 2002, Eagle corporation and Cock Merchants merged to form Flamingo Inc. 000,000 shares were issue to complete the merger. The new corporation reporLs on a calendar year basis. [in April 1 2003 the company issued an additional 400,000 shares of stock for cash. :50] 1,200,000 shares were outstanding on December 31, 2003. Flamingo also issued 311600000 of 20year, 0 percent converb'ble bonds at par on July 1, 2003. Each Sh1,000 bond convertible to so shares of common at an}; interest date. None of the bonds have been converted to date. Flamingo is preparing iis annual report for the scal year ending December 31 2003. The annual report will show earnings per share figures based upon a reported after tars net income of Shl,540,000 [the tax rate is 40 percent}. Determine for 2003: l. The number of shares to be used for calculating: a. Basic earnings per share. b. Diluted earnings per share. 2. The earnings figures to be used for calculating: a. Basic earnings per share. b. Diluted earnings per share. 3. The Basic earnings per share. 4. The Diluted earnings per share