QUESTION II Accounting for Equity - 2021: Alpha company, which is IFRS compliant, reported the following securities December 31, Convertible Preferred shares, $3 (annual), cumulative 30,000 shares outstanding. These shares can be converted into common shares 5-for-1. Dividends on these shares Qur are paid quarterly on March 31, June 30, September 30 and December 31. Common shares 100,000 outstanding. 6% $1,000 convertible bonds outstanding at par value, $3,000,000. The bonds are convertible into 60.000 common shares. Annual interest on the bonds is payable on December 31 and amounted to $150,000. 25,000 warrants, each entitling the holder to purchase 8 common shares at $21 each. 15,000 put options, each entitling the holder to sell 2 common shares at $18 each. Additional Information The company also informed you details related to the following transactions during 2022: On March 1, the company had issued 40,800 common shares. On April 1, some of the preferred shareholders exercised their conversion rights and the company issued 50,000 common shares to them. On April 30, the company declared a 3:1 stock split for common shares. All conversion and price variables were also adjusted proportionately. On May 1, the company repurchased 21,750 common shares in the market and cancelled them. Assume the average market price of the common shares to be $15 per share before taking into account the effect of the stock split. Dividends on the preferred shares were declared and paid when they came due to all preferred shareholders existing on the dividend date. The company reported a basic earnings per share of $1.204 in 2022. There were no extraordinary or discontinued items to report in 2022. The tax rte was 40%. REQUIRED: 1. Determine the weighted average number of common shares to use in calculating the Basic EPS basic earnings per share. 2. Determine the amount of dividends declared and paid to the preferred shareholders during 2022. 3. Using the basic earnings per share given, determine the net income at year ended December 31, 2022. 4. Identify the potentially dilutive securities, which could be included in calculating the diluted earnings per share (do not forget to adjust for the stock split). Be sure to support your answer with appropriate computations and rank these securities where required. 5. Determine the diluted earnings per share to be reported by the company in 2022