Bridgewater Company reported the following data for 2022.

• Net income, $6,216,000.
• Common shares outstanding at the beginning of the year, 2,400,000. The company issued 600,000 additional new shares of common stock on October 1.
• Nonconvertible cumulative preferred stock, $100 par, 8% dividend per share per year, 300,000 shares outstanding all year. No dividends were declared during 2022.
• Convertible bonds, $3,000,000 face value, were issued at par in 2019. The bonds mature in 2029. The interest rate on the bonds is 5%. The bonds are convertible into 500,000 shares of common stock.
• There were 100,000 shares of common stock options outstanding throughout 2022. Their exercise price is $20 per share. The average market price of the stock during the year was $30 per share.
• The income tax rate is 25%.
• The companys fiscal year ends December 31.

Required:

1. Calculate the weighted average number of common shares outstanding for 2022.

2. Compute basic earnings per share.

3. Compute diluted earnings per share, showing all analysis of each potentially dilutive security.

4. Indicate clearly, what must be reported on the income statement related to earnings per share for the year ended December 31, 2022.