ABC, Inc. compiled the following equity schedule for 2018: Date Transaction 1/1/18 Shares outstanding 3/31/18 2-for-1 stock split 4/1/18 Issued additional shares 12/1/18 Reaquired treasury shares Change in Shares 500,000 In addition, ABC Company compiled the following information for 2018: Total Shares 500,000 1,000,000 2,500,000 (250,000) 2,250,000 1,500,000 ABC company also had 50,000 $10 par, 5% nonconvertible, cumulative preferred shares issued and outstanding. The company paid no preferred dividends during 2017 and paid $16,000 in preferred dividends during 2018. The company had net income of $1,000,000 for the year ended December 31, 2018 and an effective tax rate of 25%. ABC Company had 1,000, $1,000 bonds with an interest rate of 10%. These bonds were convertible into a total of 100,000 shares. During 2018, ABC issued 100,000 incentive stock options with an exercise price of $50 to its employees and a year-end market price of $25 per share. 1) Calculate ABC's weighted average number of shares outstanding for 2018: 2) Calculate ABC's basic earnings per share for 2018: 3) Calculate ABC's diluted earnings per share for 2018: