Your answer is partially correct. On June $1,2023,$ Kingbird Company and Oriole Company merged to form Waterway Inc. A total of $830,000$ shares were issued to complete the merger. The new corporation reports on a calendar$-$year basis. On April $1,2025,$ the company issued an additional $643,000$ shares of stock for cash. All $1,473,000$ shares were outstanding on December $31,2025.$ Waterway Inc. also issued $\backslash (\backslash$$ $600,000\backslash )$ of $20-$year, $\backslash (8\backslash \%\backslash )$ convertible bonds at par on July $1,2025.$ Each $\backslash (\backslash$$ $1,000\backslash )$ bond converts to $42$ shares of common at any interest date. None of the bonds have been converted to date. Waterway Inc. is preparing its annual report for the fiscal year ending December $31,2025.$ The annual report will show earnings per share figures based upon a reported after$-$tax net income of $\backslash (\backslash$$ $1,550,000\backslash ).($The tax rate is $\backslash (20\backslash \%\backslash ).)$ Determine the following for $2025.$ a$.$ The number of shares to be used for calculating: $($Round answers to $0$ decimal places, e$.$g$.2,500.)1.$ Basic earnings per share shares $2.$ Diluted earnings per share shares b$.$ The earnings figures to be used for calculating: $($Round answers to $0$ decimal places, e$.$g$.2,500.)1.$ Basic earnings per share $\backslash$$ $2.$ Diluted earnings per share $\backslash (\backslash$$ $\backslash )$ eTextbook and Media