WeNeed EPS Inc., had net income of $7,800,000 in 2xxx. The company had 500,000 shares of $4 par value common stock and 70,000 shares of 8%, $100 par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible. Each share of preferred stock is convertible into three shares of common stock. Compute the following for 2xxx: (show your work)

(a) The number of shares to be used in computing basic earnings per share.

(b) The number of shares to be used in computing diluted EPS.

(c) Basic earnings per share.