On June 1, 2018,SunlandCompany and CoronadoCompany merged to form WhisperingInc. A total of731,000shares were issued to complete the merger. The new corporation reports on a calendar-year basis.

On April 1, 2020, the company issued an additional541,000shares of stock for cash. All1,272,000shares were outstanding on December 31, 2020.

WhisperingInc. also issued $600,000of 20-year,8% convertible bonds at par on July 1, 2020. Each $1,000bond converts to40shares of common at any interest date. None of the bonds have been converted to date.

WhisperingInc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,429,000. (The tax rate is20%.)

Determine the following for 2020.

(a)The number of shares to be used for calculating:

(1)Basic earnings per share

2)Diluted earnings per share

(b)The earnings figures to be used for calculating:

(1)Basic earnings per share

(2)Diluted earnings per share