q12

Yoder, Incorporated, has 3,200,000 ordinary shares outstanding on December 31,2010. An additional 800,000 ordinary shares were issued on April 1, 2011, and 400,000 more on July 1, 2011. On October 1, 2011, Yoder issued 20,000,$1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were canverted in 2011. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively? 4,400,000 and 5,200,000 4,000,000 and 4,400,000 4,000,000 and 4,100,000 4,000,000 and 4,000,000