7) At December 31, 2020 ABC Company had 200,000 shares of common stock and 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On February 10, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, ABC declared a 100% stock dividend on its common stock. Net income for 2021 was $960,000. In its 2021 financial statements, ABC's 2021 earnings per common share should be A) $4.27. B) $2.25. C) $1.33. D) $4.54. 8) ABC Co. had net income for 2021 of $600,000. The average number of shares outstanding for the period was 200,000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 12,000 shares. The average market price of the common stock during the year was $36. What should ABC Co. report for diluted earnings per share for the year ended 2021? A) $3.00 B) $2.97 C) $2.83 D) $2.86