1.

TRI reported $699,000 as net income and 233,000 weighted average common shares in 2021. TRI also reported 25,000 of 5% $100 par value, non-cumulative, non-convertible preferred shares, and TRI had not declared any dividends either in 2021 or 2020. No stock splits or stock dividends took place in 2020 or 2021.

TRI also issued bonds on December 1, 2020 2,500 of its6%, convertible, $1,000 par value bonds. The book value of the bond portion was equivalent to the face (par) value, and each bond was convertible into 30 common shares. The 2021 tax rate is 30%. On September 1, bondholders of 30% of these outstanding bonds converted them. TRI had no other potentially dilutive securities. The denominators for calculating the basic and the diluted EPS for 2021 would be:

Select one:

a.

233,000 shares and 308,000 shares.

b.

240,500 shares and 315,500 shares.

c.

233,000 shares and 300,500 shares.

d.

233,000 shares and 233,000 shares.

e.

None of the above.