21. On January 1, 2019, Sue Company had 3,000,000 shares of its common stock issued and outstanding. Sue issued a 10% stock dividend on July 1, 2019. On October 1, 2019, Sue retired 120,000 of its common shares. When calculating basic earnings per share for 2019, what is the appropriate number of shares for Sue to use in the denominator of the EPS fraction?

a. 3,030,000 b. 3,420,000 c. 3,120,000 d. 3,270,000.