The following is the capital structure and partial liabilities of Waterton Waffles Watermelon and Worcestershire Co$.$ at December $31,2023$:

Current Liabilities:

Notes Payable $$2,000,000$

Other various current liabiliti............... $\frac{5,000,000}{7,000,000}$

ong$-$term Liabilities:

$5\%$ Convertible debentures due April $15,2027$

Total long$-$term debt

$.$$$10,000,000$

'hareholders' Equity:

$$4$ Cumulative colvertible preferred shares, non$-$par; $1,000,000$ shares authorized; $580,000$ issued and outstanding $$12,000,000$

Common Shares, non$-$par; $10,000,000$ shares authorized; $3,490,000$

shares issued and outstanding

$4,200,000$

Contributed Surplus

$..2,100,000$

Retained Earnings

$\frac{38,250,000}{\text{\$}56,100,000}$

Total paid in Capital & Retained Earnings

$$50,650,000$

Total Shareholders' Equity

$$50,650,000$

ADDITIONAL INFORMATION:

a$.$ The $5\%$ convertible debentures were issued at their face value of $$10,000,000$ in $2021.$ The debentures are due in $2027$ and until then are convertible into common stock of Waterton W$\text{'}$s at the rate of $50$ shares for each $$500$ debenture.

b$.$ The $$4$ cumulative, convertible preferred shares were issued in $2022.$ On July $1,2023,$ and on October $1,2023,$ holders of the preferred shares converted $50,000$ and $20\mathrm{.}000$ preferred shares, respectively, into common shares. Each preferred share is convertible into $2$ shares of common stock.

c$.$ On March $1,2023,$ Waterton W$\text{'}$s issued $400,000$ shares of common stock for land and buildings.

d$.$ On April $1,2023,300,000$ common shares were cancelled.

d$.$ Dividends on the preferred shares have been paid quarterly $($March $31,$ June $30,$ September $30,$ & December $31)$ through December $31,2023.$

e$.$ Stock options were granted$/$written to the president of the corporation on January $1,2023.$ Each of the $20,000$ options permits the holder to purchase one share of common stock for $$10$ per share. The options are exercisable at any time after December $31,2026($within $10$ years$).$ The average market price of the shares during $2023$ was $$12\mathrm{.}50.$ Waterton W$\text{'}$s uses the "Treasury Share method" for accounting for stock options.

f$.$ Net income of Waterton Waffles Watermelon and Worcestershire Co$.$ for the year ended December $31,2023,$ was $$4,000,000.$ The income tax rate is $40\%,$ and $10\%$ rate of return after tax is normal for Waterton W$\text{'}$s$.$

REOUIRED: Prepare all required earnings per share data for $2023$ in good form. On the following table indicate the fully diluted EPS amount. Show calculations and label them clearly.

What would be shown on the December $31,2023$ Income Statement for EPS?

Check figures:

Weighted avg # CS $3,418,334$

Basic EPS $.445$

Last EPS on chart $759$

Weighted avg # PREFERRED shares also needed

Order on chart is smallest to largest EPS effect