A company had 4,500,000 shares of common stock outstanding December 31, 2017. An additional 2000,000 chares are issued on April 1, 2018 and 480,000 more on September 1, 2018. On October 1, 2018 rote issued $6,000,000 of 9% convertible bonds. Each $1000 bond is convertible into 40 shares of common stock. No bonds have been converted.

As a result of the bonds, what is the impact to the number of shares to be used in computing diluted earnings per share on December 31, 2018. (What is the number of shares you will add to the denominator to calculate dilutive EPS?)

1. 0
2. 240,000
3. 180,000
4. 210,000
5. 60,000