Marigold Corporation is preparing the comparative financial statements for the annual report to its shareholders for

fiscal years ended May $31,2025,$ and May $31,2026.$ The income from operations for the fiscal year ended May $31,$

$2025,$ was $$1,712,000$ and income from continuing operations for the fiscal year ended May $31,2026,$ was $$2,500,000.$

In both years, the company incurred a $10\%$ interest expense on $$2,322,000$ of debt, an obligation that requires

interest$-$only payments for $5$ years. The company experienced a loss from discontinued operations of $$605,000$ in

February $2026.$ The company uses a $20\%$ effective tax rate for income taxes.

The capital structure of Marigold Corporation on June $1,2024,$ consisted of $1,039,000$ shares of common stock

outstanding and $19,500$ shares of $$50$ par value, $5\%,$ cumulative preferred stock. There were no preferred dividends in

arrears, and the company had not issued any convertible securities$,$ options, or warrants.

On October $1,2024,$ Marigold sold an additional $485,000$ shares of the common stock at $$20$ per share. Marigold

distributed a $20\%$ stock dividend on the common shares outstanding on January $1,2025.$ On December $1,2025,$

Marigold was able to sell an additional $780,000$ shares of the common stock at $$22$ per share. These were the only

common stock transactions that occurred during the $2$ fiscal years.

$($a$)$

Identify whether the capital structure at Marigold Corporation is a simple or complex capital structure.

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$($b$)$

Determine the weighted$-$average number of shares that Marigold Corporation would use in calculating earnings

per share for the fiscal year ended: