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  3. bridgewater company reported the following data fo

Bridgewater Company reported the following data for 2022. - Net income, $6,216,000. - Common shares...

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Accounting

Bridgewater Company reported the following data for 2022.

- Net income, $6,216,000.

- Common shares outstanding at the beginning of the year were 2,400,000. The company issued 600,000 additional new shares of common stock on October 1.

- Nonconvertible non-cumulative preferred stock, $100 par, 6% dividend per share per year, 300,000 shares outstanding all year. No dividends were declared during 2022.

- Convertible bonds, $3,000,000 face value, were issued at par in 2019. The bonds mature in 2029. The interest rate on the bonds is 5%. The bonds are convertible into 500,000 shares of common stock.

- The income tax rate is 25%.

- The companys fiscal year ends December 31.

Required:

1. Calculate the weighted average number of common shares outstanding for 2022.

2. Calculate basic earnings per share. Show the calculations.

3. Calculate diluted earnings per share, showing all calculations for any potentially dilutive securities. Make sure amounts are formatted clearly as shares or dollars.

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