AG is preparing the comparative financial statements to be included in the annual report to shareholders. Agassi employs a fiscal year ending May 31. Income before income tax for Agassi was €1,400,000 and €660,000, respectively, for fiscal years ended May 31, 2023 and 2022. Agassi experienced a loss from discontinued operations of €400,000 in March 2023. A 40% combined income tax rate pertains to any and all of Agassi AG profits, gains, and losses. Agassi's capital structure consists of preference shares and ordinary shares. The company has not issued any convertible securities or warrants, and there are no outstanding share options. Agassi issued 40,000 shares of €100 par value, 6% cumulative preference shares in 2019. All of these shares are outstanding, and no preference dividends are in arrears. There were 1,000,000 shares of €1 par ordinary shares outstanding on June 1, 2021. On September 1, 2022, Agassi sold an additional 400,000 ordinary shares at €17 per share. Agassi distributed a 20% share dividend on the ordinary shares outstanding on December 1, 2022. These were the only ordinary share transactions during the past 2 fiscal years. Instructions a. Determine the weighted-average ordinary shares that would be used in computing earnings per share on the current comparative income statement for: 1. The year ended May 31, 2022. 2. The year ended May 31, 2023. b. Starting with income before income tax, prepare a comparative income statement for the years ended May 31, 2023 and 2022. The statement will be part of Agassi AG annual report to shareholders and should include appropriate earnings per share presentation. c. The capital structure of a company is the result of its past financing decisions. Furthermore, the earnings per share data presented on a company's financial statements is dependent upon the capital structure. 1. Explain why Agassi AG is considered to have a simple capital structure. 2. Describe how earnings per share data would be presented for a company that has a complex capital structure.