Lewis, Inc. began the year with 300,000 shares of common stock and 25,000 shares of 6%, $100 par value, cumulative, convertible preferred stock. Each share of preferred stock is convertible into 2 shares of common stock. On June 30, it purchased 10,000 shares of treasury stock. On November 1, Lewis declared a 2 for 1 stock split. Net income for the year was $850,000. Compute weighted average shares of common stock for the year, basic EPS, and diluted EPS.

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The Answer of Lewis, Inc. began the year with 300,000 shares of common stock and 25,000 shares of 6%, $100 par value, cumulative, convertible preferred stock. Each share of preferred stock is convertible into 2 shares of common stock. On June 30, it purchased 10,000 shares of treasury stock. On November 1, Lewis declared a 2 for 1 stock split. Net income for the year was $850,000. Compute weighted average shares of common stock for the year, basic EPS, and diluted EPS.