On December 31, 2015, Beta Company had 250,000 shares of common stock issued and outstanding. Beta issued a 6% stock dividend on June 30, 2016. On September 30, 2016, 38,000 shares of common stock were reacquired as tresury stock. What is the appropriate number of shares to be used in basic earnings per share computation for 2016?

A.) 255,500

B.) 274,500

C.) 305,280

D.) 265,000

Please show work