Ludwig Company had 30,000 shares of common stock outstanding on January 1, 2016. On April 1, the company issued 15,000 shares of common stock. The company had outstanding 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 $11 while the average price for the year was $12. US GAAP uses the average market price while IFRS uses the end-of-period market price in a hypothetical buy-back. What number of shares of stock should be used in computing diluted earnings per share under U.S. GAAP?

A) 42,083

B) 50,417

C) 41,250.

D) 41,705