Charles Austin of the controller's office of Oriole Corporation was given the assignment of determining the basic and diluted earnings

per share values for the year ending December $31,2026.$ Austin has compiled the information listed below.

The company is authorized to issue $7,720,000$ shares of $$10$ par value common stock. As of December $31,$

$2025,1,930,000$ shares had been issued and were outstanding.

The per share market prices of the common stock on selected dates were as follows. Price per Share

A total of $687,600$ shares of an authorized $1,224,000$ shares of convertible preferred stock had been issued on July $1,2025.$

The stock was issued at its par value of $$25\mathrm{.}00,$ and it has a cumulative dividend of $$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 $30.$

Oriole Corporation is subject to a $20\%$ income tax rate.

The after$-$tax net income for the year ended December $31,2026,$ was $$11,360,000.$ The following specific activities took place during $2026.$

January $1$: A $5\%$ common stock dividend was issued. The dividend had been declared on December $1,2025,$ to all

stockholders of record on December $29,2025.$

April $1$: A total of $392,400$ shares of the $$3$ convertible preferred stock was converted into common stock. The company

issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during $2026.$

July $1$: A $2-$for$-1$ split of the common stock became effective on this date. The board of directors had authorized the split on

June $1.$

August $1$: A total of $301,200$ shares of common stock were issued to acquire a factory building.

November $1$: A total of $24,000$ shares of common stock were purchased on the open market at $$9\mathrm{.}00$ per share. These shares

were to be held as treasury stock and were still in the treasury as of December $31,2026.$

Common stock cash dividends: Cash dividends to common stockholders were declared and paid as follows.

April $15-$$$0\mathrm{.}30$ per share

October $15-$$$0\mathrm{.}20$ per share

Preferred stock cash dividends: Cash dividends to preferred stockholders were declared and paid as scheduled. a$.$ Determine the number of shares used to compute basic earnings per share for the year ended December $31,2026.($Round answer to

$0$ decimal places, e$.$g$.1,500.$ Do not round intermediate calculations.$)$

Number of shares to compute basic earnings per share

b$.$ Determine the number of shares used to compute diluted earnings per share for the year ended December $31,2026.($Round answer

to $0$ decimal places, e$.$g$.1,500.$ Do not round intermediate calculations.$)$

Number of shares to compute diluted earnings per share

c$.$ Compute the adjusted net income to be used as the numerator in the basic earnings per share calculation for the year ended

December $31,2026.$

Adjusted net income $,$$