Waterway Industries, has 4250000 shares of common stock outstanding on December 31, 2020. An additional 791000 shares of common stock were issued on April 1, 2021, and 391000 more on July 1, 2021. On October 1, 2021, Waterway issued 20600, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

a. 5441750 and 6241750

b. 5038750 and 5038750

c. 5038750 and 5141750

d. 5038750 and 5441750