Question
Faanz, Inc., had 300,000 shares of common stock issued and outstanding at December 31, 2019. On July 1, 2020, an additional 50,000 shares of common
Faanz, Inc., had 300,000 shares of common stock issued and outstanding at December 31, 2019. On July 1, 2020, an additional 50,000 shares of common stock were issued for cash. On March 1, 2020, Faanz also issued call options to purchase 40,000 shares of common stock at $16 per share. Throughout the year Faanz had outstanding put options that it issued on 5,000 of its stock, with an exercise price of $17.50. The average market price of Faanzs common stock was $20 during 2020.
Determine the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020.
Select one:
a.333,000 shares.
b.331,667 shares.
c.331,000 shares.
d.325,000 shares.
e.332,392 shares.
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