7) On January 2, 2021, Farr Co. issued 10-year convertible bonds at 105. During 2021, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr's common stock was 50 percent above its par value. On January 2, 2021, cash proceeds from the issuance of the convertible bonds should be reported as paid-in capital for the entire proceeds. O paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance. I a liability for the face amount of the bonds and paid-in capital for the premium over the face amount. a liability for the entire proceeds. 8) Foyle, Inc., had 830,000 shares of common stock issued and outstanding at December 31. 2020. On July 1, 2021, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2021. The average market price of Foyle'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? 850,000 858,000 878,000 F 887 000