6. At December 31, 2015 Pine Company had 200,000 shares of common stock and 10,000 shares of 4%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2015 or 2016. On February 10, 2016, prior to the issuance of its financial statements for the year ended December 31, 2015, Pine declared a 100% stock split on its common stock. Net income for 2016 was $720,000. In its 2016 financial statements, Pine's 2016 earnings per common share should be a. $3.40. b. $3.20. C. $1.70. d. $1.00. -7. Stine Inc. had 300,000 shares of common stock issued and outstanding at December 31, 2016. On July 1, 2017 an additional 300,000 shares were issued for cash. Stine also had stock options outstanding at the beginning and end of 2017 which allow the holders to purchase 90,000 shares of common stock at $28 per share. The average market price of Stine's common stock was $35 during 2017. The number of shares to be used in computing diluted earnings per share for 2017 is a. 672,000 b. 618,000 c. 522,000 d. 468,000