Exercise 17-10 On June 1, 2015, Gustav Corp. and Gabby Umited merged to fom Carla Vista Inc. A total of 680,000 shares were issued to complete the merger. The new corporation uses the calendar year as its fiscal year. ll 1.02 million sthares were outstanding on December 31, 2017. Carla Vista Inc. also issued $510,000 of 20-year, 10 % convertible bonds at par July 1, 2017. date. If the bonds had been issued without the conversion feature, the annual interest rate would have been 11%. Assume that On April 1, 2017, the company issued an additicnal 340,000 shares for cash. Each $1,000 bond converts to the intere common shares any interest date. None of the bonds have been converted on the bond is paid annually. spreparing its annual report for the fiscal year ended December 31, 2017. The annual report will show earnings per share figures based on a reported after-tax net income Carla Vista Inc. $1,600,000 (the tax rate is 30%). Determine for 2017 the number of shares to be used in calculating: 1. Basic earnings per share, Diluted earnings per share. (Round answers to 0 decimal places, e.g. 5,275.) shares for basic eamings per share Number shares 2. Number shares for diluted earnings per share shares Determine for 2017 the earnings figures to be used in calculating: 1. Basic earnings per share, 2. Diluted earnings per share. (Use the net present value method while calculating diluted earnings.) (Round factor values to 6 decimal places, e.q. 1. 251245 and all other answers to 0 decimal places, e.g. 5,275.) Earnings for basic carnings per share 2. Earnings for diluted earnings per share