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On December 31, 2020, Gordon Company had outstanding 600,000 shares of common stock and 60,000 shares of 5% cumulative preferred stock (par $10). On February 28, 2021, Gordon issued an additional 72,000 shares of common stock A 10% stock dividend was declared and distributed on July 1, 2021. On September 1, 2021. Gordon purchased 24,000 shares as treasury stock. No dividends were declared in 2021. Net income was $800,000. The tax rate for the year was 25% At year-end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted for the stock dividend). The exercise price was $12. The market price of the common stock was $18 per share on December 31, 2021, and averaged $20 per share during the year. Also outstanding were $1,000,000 face amount of 6% convertible bonds issued in 2018 and convertible into 50,000 common shares (adjusted for the stock dividend). 1. To calculate basic earnings per share for the year ended December 31, 2021, a. The amount included in the numerator will be b. The amount included in the denominator will be 2. To calculate diluted earnings per share for the year ended December 31, 2021, a. The amount included in the numerator will be b. The amount included in the denominator will be

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