Rafael Company has 36,000 shares of common stock issued on January 1. 18,000 shares were issued on March 1. 6000 shares were issued on July 1. A 2-for-1 stock split occurred on September 1. 12,000 shares of treasury stock were purchased on December 1.

Net income is $405,000.

The tax rate is 20%.

No dividends have been declared for this year or the previous year.

Conversion features have been adjusted for the stock split.

Options to purchase 11,000 shares at $13 per share are outstanding. The average market price is $15.

Options to purchase 3000 shares at $16 per share are outstanding. The average market price is $15.

$400,000 of 9-year, 5% bonds issued at 97 are outstanding. Each $1000 bond is convertible into 12 shares of common stock. The discount is being amortized using the straight-line method.

$500,000 of 10-year 6% bonds issued at 101 are outstanding. Each $1000 bond is convertible into 12 shares of common stock. The premium is being amortized using the straight-line method.

1500 shares of $3 cumulative preferred stock are outstanding. Each preferred share is convertible into 7 shares of common stock.

2500 shares of noncumulative $4 preferred stock are outstanding. Each preferred share is convertible into 8 shares of common stock.

The numerator for basic eps is

a. $405,000

b. $405,000 - $9000

c. $405,000 - $4500

d. $405,000 - $10,000