Exercise 17-10 On June 1, 2015, Gustav Corp. and Gabby Limited merged to form Sunland Inc. A total of 820,000 shares were issued complete the merger. The new corporation uses the calendar year as its fiscal year. additicnal 410,000 shares for cash. All 1.23 million shares were outstanding on December 31, 2017. Sunland Inc. also issued $615,000 of 20-year, 7% convertible bonds at par n July 1, 2017. Each nApril 1, 2017, the company issued torest co the hond is naid angual ares at any interest date. None of the bonds have been converted to date. If the bonds had been issued without the conversion feature, the annual interest rate would have been 8%. Asume that the , 2017. The annual report will show earnings per share figures based :net income of $1,890,000 (the tax rate is 33%). Sunland is preparing its annual report for the year ended December a reported after Determine for 2017 the number of shares to be used in calculating: 1. Basic eamings per share, Diluted eamings per share. (Round answers to 0 decimal places, e.g. 5,275.) 1. Number shares for basic earnings per share shares 2. Number shares for diluted eamings per share shares Determine for 2017 the earnings fiqures to be used in calculating: 1. Basic earninas per share, 2. Diluted earnings per share. (Use the net present value method while calculating diluted earninas.) (Round factor values to 6 decimal places e.g. 1.251245 and all other answers to 0 decimal places, e.q. 5,275.) 1. Earnings for basic carnings per share 2. Eamings for diluted eamings per share