Charles Austin of the controller's office of Flounder Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 8,320,000 shares of $10 par value common stock. As of December 31, 2017, 2,080,000 shares had been issued and were outstanding 2. The per share market prices of the common stock on selected dates were as follows July 1, 2017 January 1, 2018 April 1, 2018 July 1, 2018 August 1, 2018 November 1, 2018 December 31, 2018 Price per Share $20.00 21.00 25.00 11.00 10.50 9.00 10.00 3. A total of 732,000 shares of an authorized 1,272,000 shares of convertible preferred stock had been issued on July 1, 2017. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30. 4. Flounder Corporation is subject to a 40% income tax rate. 5. The after-tax net income for the year ended December 31, 2018, was $11,230,000 The following specific activities took place during 2018 1. January 1-A 5% common stock dividend was issued. The dividend had been declared on December 1, 2017, to all stockholders of record on December 29, 2017. 2. Apni 1-A total of 422,400 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the