The company had begun their calendar fiscal year of 2018 with 799,000 common shares issued and outstanding. Mr. Jell provided you with additional information on the companys equity and debt transactions for the year. L On February 1, it had issued 48,000 shares; 840,000 shares on May 1 and 72,000 shares on September 1, respectively. L Further on March 1, it had acquired 12,000 shares from the market and had immediately cancelled them. L The company also had outstanding at the beginning of the year, 8% convertible preferred shares capitalized at $1,560,000. The preferred shareholders were eligible to convert their shares into 64,000 common shares. L Jupp Jellies had not declared any dividends for 2017 or for 2018. L The company also reported convertible debt. These were bonds payable, issued at par on August 1, 2018, for $15,000,000 and paying interest annually at a 4% rate. Each $1,000 par value bond could be converted into 8 common shares of the company. L Companies at Jupiter are taxed at a flat rate of 35%. L Upon inquiring further, Mr. Jell told you about the the two types of options which had been issued in prior years and were outstanding as at the beginning of 2018. Put options had been issued to employees which entitled holders to sell 358,000 of the companys common shares to the company for $15.00 each. The company had also issued call options to the management team which enabled them to buy 230,000 common shares at $19.00 each. Jupp Jellies shares traded at an annual average price of $10.00 each. All options remained outstanding at the end of the year. L And finally, the company reported net income of $4,022,400. There was nothing to report for Discontinued Operations. With your meeting having concluded, Mr. Jell, almost apologetically, handed you a list of questions he wanted you to resolve and insisted that you support your responses with clear detailed computations. He did add that there would be other questions arising from related transactions which were to follow once this one was resolved. Uses IFRS REQUIRED: a. Determine the weighted average number of shares to determine the basic earnings per share for 2018. b. Determine the basic earnings per share for 2018, assuming (i) the preferred shares were cumulative. (ii) the preferred shares were not cumulative. c. Identify the potentially dilutive securities which could be included in the computation of diluted earnings per share. Be sure to support your answer with detailed computations and rank these securities where required. d. Determine the diluted earnings per share to be reported by the company in 2018 assuming preferred shares were cumulative. e. For this part only, assume that the net income of $4,022,400 was as stated above but included an after-tax gain of $1,235,200 from discontinued operations. Assume the preferred shares were cumulative. Determine the basic and diluted earnings per share to be disclosed for 2018 and show how they would be reported. (Hint: recalculate the basic and diluted earnings per share for both continuing and discontinued operations). f. For this part only, assume that the company declared a 3 for 1 stock split on June 1. What would be the revised weighted average number of shares for determining the basic earnings per share