The following information is available for Dylan Inc., a company whose shares are traded on the Toronto Stock Exchange:

Other information:
1. For all of the fiscal year 2017, $100,000 of 6% cumulative convertible bonds have been outstanding. The bonds were issued at par and are convertible into a total of 10,000 common shares (adjusted for the stock dividend) at the option of the holder, and at any time after issuance.
2. Stock options for 20,000 common shares have been outstanding for the entire 2017 fiscal year, and are exercisable at the option price of $25 per share (adjusted for the stock dividend).
3. For all of the fiscal year 2017, $100,000 of 4% cumulative convertible preferred shares have been outstanding. The preferred shares are convertible into a total of 15,000 common shares (adjusted for the stock dividend) at the option of the holder at any time after January 2022.
Instructions
(a) Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2017.
(b) Calculate basic earnings per share for 2017.
(c) Determine the potential for dilution for each security that is convertible into common shares.
(d) Calculate diluted earnings per share for 2017. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.

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Net income for 2017 Average market price of common shares during 2017 (adjusted for stock dividend) December 31, 2017 (fiscal year end) market price of common shares Income tax rate for fiscal year 2017 Transactions in common shares during 2017: Jan. 1, 2017, common shares outstanding Mar. 1, 2017, issuance of common shares June 1, 2017, 10% stock dividend Nov. 1, 2017, repurchase of common shares $150,000 $20 $20 30% Cumulative shares Change 90,000 120,000 30,000 12,000 130,000132,000