Gear Corporation had the following common stock record during the current calendar year:

Outstanding-January 1	100,000
Additional shares issued 3/31	5,000,000
Distributed a 10% stock dividend on 6/30
Shares reacquired 9/30	100,000

What is the number of shares to be used in computing basic EPS?

A. 5,500,000.

B. 4,210,000.

C. 5,303,750.

D. 5,050,000.

Sims Company reported net income for 2021 in the amount of $50,000. During 2021, Sims declared and paid $2,000 in cash dividends on its nonconvertible preferred stock. Sims also paid $10,000 cash dividends on its common stock. Sims had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share? (Round final answers to 2 decimal places.)

A. $0.42.

B. $0.47.

C. $0.56

D.$0.53

Royce Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2021. What is the diluted earnings per share (rounded)?

A. $3.60.

B. $3.81

C. $4.50.

D. $4.10