On January 1, 2020, Ehrlich had outstanding 300,000 shares of $2 par value common stock and 15,000 shares of 8%, $50 par value, cumulative preferred stock. Each share of preferred stock is convertible into 2 shares of common stock.

During 2020, Ehrlich had the following transactions with regards to its common stock:

3/1 purchased 20,000 shares of its common stock

7/1 Declared a 2-for-1 stock split

9/1 issued 15,000 shares of its common stock

During 2020, Ehrlich declared and paid the dividend on its preferred stock .

During 2020, Ehrlich earned net income of $750,000.

INSTRUCTIONS:

a. Determine the weighted average number of shares outstanding.

b. Determine the corporation's basic earnings per share.

c. Determine the corporation's diluted earnings per share.