Exercise 16-23 an June1, 2015, Pharoah Company and Navak Company marged to form Splish Inr. A tatal of 870,00 shares were issued to camplete the merger. The new corporation reports on a calendar-year basis. On April 1, 2017, the company issued an additional 543,000 shares of stock for cash. All 1413,000 shares were outstanding on December 31, 2017 Splish Inc. ako sued $6DI) DI 1 n 20 oar 8% convertible honds at par on lu y 1 21117. Each $1,ODD band cnnverts to 38 shares o cm man at any int rest date. Nane ar the bands have been cnn erted to date. Splish Inc. is preparing its annual report ror the fiscal year ending December 31, 2017 The annual eport will show earnings per share gures based on a reported a er tax net inoome of $1,613,000 The tax rete is 40% Determine the follawing for 2017 (a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2500.) (1) Basic earnings per share (2) Diluted earnings per share (b) The earnings figures to be used for calculating: (Round answers to O decinnal places, e.g. $2,500.) shares (1) Besic earnings per share (2) Diluted earnings per share