EPS Inc. had net income of $$625,000$ in $2$xxx$.$ The company had $1,000,000$ shares of $$8$ par value common stock and

$25,000$ shares of $10\%,$ $$100$ par, preferred stock outstanding throughout the year. Each share of preferred stock is both

cumulative and convertible into $5$ shares of common stock.

Compute the following for $2$xxx: $($show your work$)$

$($a$)$ The number of shares to be used in

computing basic earnings per share.

$($b$)$ The number of shares to be used in

computing diluted EPS.

$($c$)$ Basic earnings per share.

$($d$)$ Diluted earnings per share.