Question $15$ of $20$

$\frac{0\mathrm{.}15}{0\mathrm{.}6}$

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Your answer is partially correct.

On June $1,2023,$ Kingbird Company and Oriole Company merged to form Waterway Inc. A total of $830,000$ shares were issued to complete the merger. The new corporation reports on a calendar$-$year basis.

On April $1,2025,$ the company issued an additional $643,000$ shares of stock for cash. All $1,473,000$ shares were outstanding on December $31,2025.$

Waterway Inc. also issued $$600,000$ of $20-$year, $8\%$ convertible bonds at par on July $1,2025.$ Each $$1,000$ bond converts to $42$ shares of common at any interest date. None of the bonds have been converted to date.

Waterway Inc. is preparing its annual report for the fiscal year ending December $31,2025.$ The annual report will show earnings per share figures based upon a reported after$-$tax net income of $$1,550,000.($The tax rate is $20\%.)$

Determine the following for $2025.$

a$.$ The number of shares to be used for calculating: $($Round answers to $0$ decimal places, e$.,.2,500.)$

Basic earnings per share $$

shares

Diluted earnings per share $$ shares

b$.$ The earnings figures to be used for calculating: $($Round answers to $0$ decimal places, e$.$g$.2,500.)$

Basic earnings per share

$ $$

Diluted earnings per share

$ $$