Exercise 16-23 On June 1, 2015, Sweet Company and Pharoah Company merged to form Novak Inc. A total of 733,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2017, the company issued an additional 577,000 shares of stock for cash. All 1,310,000 shares were outstanding on December 31, 2017 da e None of he Novak inc. also issued $600,000 o 20-year, 8% convertible bonds at par on Ju y 1 2017. Each $1,000 bond converts to 4 bonds have been converted to date. shares of common at any ntere Novak Inc. is preparing its annual report for the fiscal year ending December 31, 2017. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,475,000. (The tax rate is 40%.) Determine the following for 2017. (a) The number of shares to be used for calculating:(Round answers to O decimal places,e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share (b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share shares shares