Griselda Corporation provided the following share information for the current year, $2023.$

Event and Date Number of Shares

$1/1-$ Beginning balance $150,000$

$5/1-$ New share issue $345,000$

$7/1-$ Two$-$for$-$one stock split

$8/1-$ New share issue $300,000$

$12/1-$ Treasury stock acquisition $(120,000)$

Griselda reported a net income of $$650,190$ and a $$450,000$ loss from discontinued operations, net of tax. The company is subject to a $40\%$ tax rate.

Additional Information

$$ Griselda has $$400,000,3\%$ convertible debt outstanding as of the beginning of the year. The debt was issued at par. Each $$1,000$ par value bond converts into $20$ shares of the company$$s common stock. None of the bonds were converted during the year.

$$ The company$$s shareholders$$ equity section indicates that the firm also holds $4\%$ convertible preferred shares of par value $$1,400,000,$ outstanding at the beginning of the current year. The preferred shares can convert into $40,000$ shares of common stock.

$$ The dividends on preferred shares are declared four times a year on March $31,$ June $30,$ September $30$ and December $31$ respectively. These dividends are declared on shares outstanding on the date of the dividends. No dividends are declared on shares held for part of a dividend period. The board of directors declared the dividends as they became due.

$$ During the year, on October $1,30\%$ of the preferred shares exercised their option and converted into common shares.

$$ Griselda had $18,000$ put options outstanding all year. Each option offered the holder the right to sell one common share of Griselda to the company at an exercise price of $$8\mathrm{.}00$ per share. Assume the average market price $($adjusted for the stock split$)$ of the company$$s shares for the current year is $$2\mathrm{.}50$ per share.

Required:

$1.$ Determine the weighted average number of shares which are to be used in computing the diluted earnings per share.

$2.$ Compute basic and diluted earnings per share for both income from continuing operations and net income. Show all computations.

$3.$ Prepare all required disclosures beginning with income from continuing operations