Question $1(6$ points$)$

Stainless Corporation had net income of $$7,800,000$ in $2010.$ The company had $500,000$ shares of $$4$ par value common stock and $70,000$ shares of $8\%,$$$100$ par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into two shares of common stock. Compute the following for $2010$:

$\backslash$table$[[($a$)$ The number of shares to be used in computing basic earnings per share$],[($b$)$ The number of shares to be used in computing diluted EPS$],[($c$)$ Basic earnings per share$]]$