Problem 16-6 (Part Level Submission) Sarasota Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal year ended May 31, 2017, was $1,775,000 and income from continuing operations for the fiscal year ended May 31, 2018, was $2,566,000. In both years, the company incurred a 10% interest expense on $2,446,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $617,000 on February 2018 The company uses a 40% effective tax rate for income taxes. The capital structure of Sarasota Corporation on June 1, 2016, consisted of 954,000 shares of common stock outstanding and 20,100 shares of $50 par value, 5%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. 1, on October 1,2016, Sarasota sold an additional 490,000 shares of the common stock at $20 per share. Sarasota distributed a 20% stock dividend on the common shares outstanding on anuary 2017. On December 1, 2017, Sarasota was able to sell an additional 794,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. (b) Determine the weighted-average number of shares that Sarasota Corporation would use in calculating earnings per share for the fiscal year ended Weighted-average number of shares (1) May 31, 2017 (2) May 31, 2018 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attempts: 0 of 5 used