Charles Austin of the controller's office of Sheridan Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 7,720,000 shares of $10 par value common stock. As of December 31, 2020, 1,930,000 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, 2020 January 1, 2021 Price per Share $20.00 21.00 April 1, 2021 25.00 July 1, 2021 11.00 August 1, 2021 10.50 November 1, 2021 9.00 December 31, 2021 10.00 3. A total of 691,200 shares of an authorized 1,224,000 shares of convertible preferred stock had been issued on July 1, 2020. 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. Sheridan Corporation is subject to a 20% income tax rate. 5. The after-tax net income for the year ended December 31, 2021, was $10,980,000.