The Burrows Corporation's net income for the year ended December 31, 20x4 was $4,480,000. Extracts from Burrows' December 31, 20x4 statement of financial position are as follows:

• Bonds payable, 5%, maturity December 31, 20x17, interest paid semi-annually. Each $1,000 bond is convertible into 25 common shares. Total face value of bonds = $25,000,000 $25,723,418
• Preferred shares - Series A, $6, cumulative, 70,000 shares outstanding. Each share is convertible into 8 common shares 7,500,000
• Preferred shares- Series B, 5%, noncumulative, 50,000 shares outstanding. The shares are not convertible. 3,000,000
• Common shares, 2,800,000 shares issued and outstanding 22,500,000
• Retained earnings 16,780,000

Additional Information

• The income tax rate is 38%
• During 20x3, Burrows purchased a subsidiary. The purchase agreement stipulated that if the subsidiary's earnings exceeded $1,200,000 during 20x4 that 25,000 common shares would be issued on April 1, 20x5. The subsidiary's earnings for 20x4 were $1,280,000.
• Burrows has two stock option plans outstanding at December 31, 20x4:

Plan 301 - 40,000 options at an exercise price of $10

Plan 302 - 55,000 options at an exercise price of $13

the common stock's average price for the year ended December 31, 20x4 was $12.53 per share

• the following common stock transactions occurred during the year:

March 1, 20x4 - Issued 150,000 shares

July 2, 20x4 - Repurchased and cancelled 80,000 shares

November 1, 20x4 - Issued 225,000 shares

• none of the 5% bonds have been converted to common shares
• no dividends were declared during 20x4. The dividends in the Series A preferred shares are 3 years in arrears as of December 31, 20x4

Required -

a)Calculate the basic and diluted EPS for the year ended December 31, 20x4.

b)Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 3:1 stock split on August 31, 20x4.