1.Sheridan Company, has 4150000 shares of common stock outstanding on December 31, 2020. An additional 809000 shares of common stock were issued on April 1, 2021, and 410000 more on July 1, 2021. On October 1, 2021, Sheridan issued 19100, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

a	5357250 and 6157250

b	4961750 and 4961750

c	4961750 and 5057250

d	4961750 and 5357250

2. Sheridan Company had 1580000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1244000 shares were issued for cash. Sheridan also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 379000 shares of common stock at $15 per share. The average market price of Sheridan's common stock was $20 during 2021. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2021?

a

2315500

b

2486250

c

2296750

d

2918750

3.On March 1, 2021, Concord Corporation issued $2070000 of 7% nonconvertible bonds at 104, which are due on February 28, 2041. In addition, each $1000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Concord common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2021, the fair value of Concords common stock was $40 per share and the fair value of the warrants was $2. What amount should Concord record on March 1, 2021 as paid-in capital from stock warrants?

a

$88840

b

$107640

c

$103500

d

$77240