The following information is available for Noonbeam Inc., a company whose shares are traded on the Toronto Stock Exchange:

Other information:
1. For all of the fiscal year 2011, $100,000 of 6% cumulative convertible bonds have been outstanding. The bonds were issued at par and are convertible into a total of 10,000 common shares (adjusted for the stock dividend) at the option of the holder, and at any time after issuance.
2. Stock options for 20,000 common shares have been outstanding for the entire 2011 fiscal year, and are exercisable at the option price of $25 per share (adjusted for the stock dividend).
3. For all of the fiscal year 2011, $100,000 of 4% cumulative convertible preferred shares have been outstanding. The preferred shares are convertible into a total of 15,000 common shares (adjusted for the stock dividend) at the option of the holder, and at any time after January 2016.
Instructions
(a) Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ending December 31, 2011.
(b) Calculate basic earnings per share for 2011.
(c) Determine the potential for dilution for each security that is convertible into common shares.
(d) Calculate diluted earnings per share for 2011. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.

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Net income Average market price of common shares during 2011 (adjusted for stock dividend) December 31, 2011 (fiscal year end) market price of common shares Income tax rate for fiscal year 2011 $150,000 $20 $20 40% Transactions in common shares during 2011: Jan. 1, 2011, common shares outstanding Mar. 1, 2011, issuance of common shares June 1, 2011, 10% stock dividend Nov. 1, 2011, repurchase of common shares Cumulative shares 90,000 120,000 132,000 102,000 Change 30,000 12,000 (30,000)