Coffee Co. had the following information related to common and preferred shares during the year:

Common shares outstanding	1/1	700,000
Common shares repurchased	3/31	20,000
Conversion of preferred shares	6/30	40,000
Common shares repurchased	12/1	36,000

Coffee reported net income of $2,000,000 at December 31. What amount of shares should Coffee use as the denominator in the computation of basic earnings per share?

A.

684,000

B.

700,000

C.

702,000

D.

740,000