Dulcinea Corporation had $1,000,000 of net income in 2022. On January 1, 2022, there were 225,000 shares of common stock outstanding. On April 1, there were 12,000 additional shares issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1, Dulcinea bought 20,000 shares of treasury stock.

The market price of the common stock averaged $30 during 2022. The tax rate is 30%.

During 2022, there were 10,000 shares of cumulative, convertible preferred stock outstanding. The preferred is $100 par, pays $4 per share in dividends per year and each share of preferred stock is convertible into two shares of common stock.

Dulcinea issued $5,000,000 of 5% convertible bonds at face value ten years earlier. All bonds remained outstanding throughout 2022. Each $1,000 bond is convertible into 10 shares of common stock.

Required:

Calculate the weighted average number of shares outstanding for 2022 to be used to calculate basic earnings per share.

Compute basic earnings per share.

Calculate the number of shares to be used to calculate diluted earnings per shares.

Compute diluted earnings per share.