Shown below is the stockholders' equity section of Lchrer Corp.'s balance sheet at 1231/04 5% cumulative preferred stock, $100 par Common stock, $2 par Additional paid-in capital Retained earnings Total stockholders' equity $50,000 120,000 160,000 340.000 $670.000 Transactions during 2005 On January 1, Lehrer issued $90,000 face amount of 10% convertible bonds for cash. Each bond ($1,000 face) can be converted to 30 shares of common stock at any time. The bonds were issued at a discount, and bond interest expense reported in the company's 2005 income statement was $9,500. No bonds were converted during 2005 On 9/1/2005, Lehrer issued 18,000 common shares for cash. On 10/31 Lehrer purchased 6,000 common shares and held them as treasury stock. Additional information: Lehrer had options to purchase 20,000 common shares at $19 outstanding throughout 2005. None of these options were exercised during the year, Lehrer's 2005 net income was $170,000. The company's common stock traded at an average price of $25 during the year. Lehrer's tax rate, applicable to all items of profit and loss, is 30%. . How many shares of common stock did Lehrer have outstanding on 12 31/04? 2. Compute weighted average common shares outstanding during 2005 (show calculation). 3. What amount should Lehrer report as basic EPS for 2005? (Show calculation.) 4. What amount should Lehrer report as diluted EPS? (Show calculations and show how the order of inclusion of potential common shares was determined.)