The Following Information Was Obtained from Cyber Corporation's Annual Report $\text { Common stock: shares outstanding }$

The following information was obtained from Cyber Corporation's annual report. $\text { Common stock: shares outstanding }$
$\begin{array}{ll}\text { Balance on January } 1 & 500,000 \\\text { April } 1 \text { - issued in conversion of preferred stock } & 200,000 \\\text { July } 1 \text { - sold for cash } & \underline{ 100,000} \\ \text { Balance on December 31 } & \underline{800,000} \\\end{array}$

$\text { Preferred stock: shares outstanding }$
$\begin{array}{l}\$ 10 \text { par } 8 \% \text {, each convertible into two common shares }\\\begin{array}{lr}\text { Shares outstanding, January } 1 & 175,000 \\\text { Converted on April } 1 \text { (into 200,000 common) } & \underline{100,000} \\ \text { Shares outstanding at year-end } & \underline{ 75,000} \\\end{array}\end{array}$

Options
100,000 options each to purchase one common share at $\$ 80$ per share. None have been exercised.

$\text { Additional information: }$
$\begin{array}{lll}\text { Market prices of common stock for Year } & \begin{array}{l}\text { Average for Year } \\\$ 84\end{array} & \begin{array}{l}\text { End of Year } \\\$ 86\end{array} \\\text { Preferred dividends paid in year } & \$ 80,000 & \\\text { Net income } & \$ 1,200,000 &\end{array}$

a. Compute weighted-average number of common shares outstanding for the year.
b. Compute basic EPS.
c. Compute diluted EPS.