On January 1, 2021, Albacore Company had 310,000 shares of its common stock issued and outstanding. Albacore issued a 10% stock dividend on July 1, 2021. On October 1, 2021, Albacore retired 14,000 of its common shares. When calculating basic earnings per share for 2021, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction?

Multiple Choice

• 325,400.

• 341,000.

• 344,500.

• 337,500.

During 2021, Angel Corporation had 1,070,000 shares of common stock and 135,000 shares of 4% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Angel declared and paid cash dividends of $470,000 and $235,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Angel issued $2,170,000 of convertible 3% bonds at face value. Each $1,000 bond is convertible into five common shares. Angel's net income for the year ended December 31, 2021, was $8.55 million. The income tax rate is 25%. What is Angel's basic earnings per share for 2021, rounded to the nearest cent?

Multiple Choice

• $7.99.

• $8.21.

• $7.77.

• None of these answer choices are correct.