t 33. During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021.- Farewell's net income for the year ended December 31, 2021, was $2.5 million. The income tax rate is 25%. Farewell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2021.- t What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent?- t A. $3.14. B. $4.90.- C. $4.34. D. Cannot determine from the given information. t 34. Gear Corporation had the following common stock record during the current calendar year:- t 100,000+ 5,000,000 Outstanding-January 12 Additional shares issued 3/31+ Distributed a 10% stock dividend on 6/30- Shares reacquired 9/30- 100,000+ t What is the number of shares to be used in computing basic EPS? t A. 5,500,000.- B. 4,210,000.- C. 5,303,750. D. 5,050,000