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Carla Vista Corporation Ltd$.$ has the capital structure shown below at the following fiscal years ended December $31$:

The following additional information is available.

On July $31,2023,$ Carla Vista exchanged common shares for a large piece of equipment. This was the only transaction that

resulted in issuance of common shares in $2023.$

Income before discontinued operations for $2023$ was $$1,500,000,$ and a loss from discontinued operations of $$300,000$ was

recorded, net of applicable tax recovery.

During $2023,$ dividends in the amount of $$4$ per share were paid on the preferred A shares.

Each $$1,000$ bond can be converted into $25$ common shares.

There were unexercised stock options, outstanding since $2020,$ that allow holders to purchase $20,000$ common shares at $$4$

per share.

Written warrants to purchase $10,000$ common shares at $$10$ per share were outstanding at the end of $2022,$ and no warrants

were exercised in $2023.$The average market value of the common shares in $2023$ was $$8.$

Carla Vista's tax rate is $20\%.$

Carla Vista declared and paid a $$5,000$ dividend to common shareholders on June $1,2023.$

$($a$)$

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Determine the weighted average number of common shares that would be used in calculating earnings per share for the year

ended December $31,2023.$

Weighted average number of common shares

shares

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$($b$)($b$)$

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Calculate basic earnings per share for income from continuing operations. $($Round answer to $2$ decimal places, e$.$g$.2\mathrm{.}45.)$

Basic EPS $

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$($c$1)$

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Calculate the proceeds from assumed exercise of $20,000$ options.Calculate incremental shares outstanding upon the exercise of options. $($Round answer to $0$ decimal places, e$.$g$.2,545.)$

Incremental shares outstanding

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$($c$2)$

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Calculate the after$-$tax interest paid on the $5\%$ convertible bonds.

After$-$tax interest $

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Determine an incremental per share effect for $5\%$ bonds. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

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$($c$4)$

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$($c$5)$

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