. On January 1, 2014, American Corporation has the following capital structure: 1.Common stock ($50 par value, 300,000 shares issued and outstanding) 2.Convertible debt (10%, five-year term maturing on 12/31/2016, $500,000 principal value, issued at par; each $1,000 is convertible to 5 shares of common stock) 3.Convertible preferred stock (10%, $100 par value, cumulative; $1,000,000 total; 10,000 shares issued and outstanding; each $1,000 convertible to 5 shares of common stock) During the year the following occurred: 1. On March 1st, issued an additional 30,000 shares 2. On July 1st, acquired 60,000 shares (treasury stock) 3. On October 1st reissued 40,000 shares of the treasury stock 4. The number of common shares outstanding at yearend is 310,000 5. Net income for the year ended 12/31/14 was $710,000 6. No dividends were declared on the convertible preferred stock 7. Company has a 30% tax rate Required: 1. Compute the weighted average number of shares outstanding for 2014 2. Compute basic earnings per share 3. Compute diluted earnings per share