Company A has 4,000,000 shares of common stock issued and outstanding and the current market price of their common stock per share is $80. Company A issued stock options with an average exercise price of $90 per share for 1,000,000 common shares and stock options with an average exercise price of $55 per share for 500,000 common shares. Compute the amount of additional dilutive share of common stock using the treasury method. You must show your work for credit.

4. Based on the following common stock events compute the denominator of the number of shares that would be used in computing basic earnings per shares. You must show your work for credit. [4 points) For the year ended December 31, 2020 Beginning balance of common stock Shares Outstanding 600,000 On March 31, 2020 the company completed a public offering of common stock 250,000 On June 30, 2020 some of the company's preferred shareholders converted into common stock 35,000 On September 30, 2020 the company repurchased some its common stock (100,000) Ending balance of common stock 785,000 5. Refer to Tesla, Inc.'s 2020 Form 10K and specifically item 8, Financial Statements and Supplementary Data, which is included in the financial information section of course documents included in blackboard. A. What financial statement includes Tesla's basic and fully-diluted earnings pre share for the year ended December 31, 2020? (72 point) ACCT 321 CHAPTER 16 HANDOUT SOLUTIONS | PAGE 1 B. For the year ended December 31, 2020 Tesla used 933 million common shares in computing basic earnings per share. On the December 31, 2020 balance sheet in the common stock line item of the stockholders' equity section states Tesla had 960 million in common shares outstanding. Why did Tesla use the 933 million shares and not the 960 million shares to compute its basic earnings per share? (1 point) C. Why did Tesla use 1,083 million in common shares for fully diluted earnings per share instead of the 933 million shares for the year ended December 31, 2020? (1/2 point)