The following information is available for Sheridan Inc., a company whose shares are traded on the Toronto Stock Exchange: Net income for 2020 Average market price of common shares during 2020 (adjusted for stock dividend) December 31, 2020 (fiscal year end) market price of common shares Income tax rate for fiscal year 2020 $154,000 $22 $22 30% Change Transactions in common shares during 2020: Jan. 1, 2020, common shares outstanding Mar. 1, 2020, issuance of common shares June 1, 2020, 10% stock dividend Nov. 1, 2020, repurchase of common shares 30,000 12,000 (30,000) Cumulative shares 90,000 120,000 132,000 102,000 Other information: 1. For all of the fiscal year 2020, $116,000 of 6% cumulative convertible bonds have been outstanding. The bonds were issued at par and are convertible into a total of 9,000 common shares (adjusted for the stock dividend) at the option of the holder, and at any time after issuance. 2. Stock options for 15,100 common shares have been outstanding for the entire 2020 fiscal year, and are exercisable at the option price of $27 per share (adjusted for the stock dividend). 3. For all of the fiscal year 2020, $116,000 of 4% cumulative convertible preferred shares have been outstanding. The preferred shares are convertible into a total of 14,400 common shares (adjusted for the stock dividend) at the option of the holder, and at any time after January 2025. *(a) Your answer is correct. Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020. (Round answer to 0 decimal places, e.g. 5,275.) Weighted average number of common shares 121,500 T121,500 shares *(61) * Your answer is incorrect. Try again. Calculate the income effect of the dividends on preferred shares. 2 ? Dividends on preferred shares $1