Earnings Per Share-Basic and Diluted
Stainless Corporation Had Profit of $7,800,000

Earnings per share-basic and diluted
Stainless Corporation had profit of $7,800,000 in 2010. The company had 500,000 shares of $4 par value ordinary share and 70,000 shares of 8%, $100 par, convertible preference share outstanding throughout the year. Each share of preference share is convertible into two shares of ordinary share. Compute the following for 2010: $$\begin{array} { | l | } \hline \text { (a) The number of shares to be used in computing basic earnings per share } \\\hline \text { (b) The number of shares to be used in computing diluted EPS } \\\hline \text { (c) Basic earnings per share } \\\hline\end{array}$$