PLEASE ANSWER QUESTIONS NUMBER 2 AND 3. THANK YOU.

CHAPTER 9 192 1981 4.035,714 3.750,000 Weighted average number of shares Shares applicable to convertible debentures converted at the beginning at the third quarter of 19x2, excluding 100,000 shares included under common stock for 19x2 Shares applicable to warrants included above Shares applicable to warrants based on year-end price of 572 100,000 200,000 (35,714) 83,333 4,183,333 3,950,000 Net Income. Income before extraordi- nary item and net income would be ad- justed for interest expense on the deben- tures in calculating fully diluted earnings per share. Taxes in 19x1 and 19x2 were 46 percent. Trelease's net income (before preferred stock dividends) was as follows: Questions 1. Be prepared to explain the calculations shown above for arriving at the weighted- average number of common shares, com- mon stock equivalents, and fully diluted shares. 2. Starting with the item "Income before ex- traordinary item." complete the remainder of the 19x2 and 19x1 income statements. 3. Compute Trelease's primary and fully di- luted earnings per share for 19x2 and 19x1. 19,2 Income before extra- ordinary item. Net income 1941: Net incorne $12.900,000 13,800,000 10.300.000