White Corporation has 4,000,000 shares of common stock outstanding on 12/31/10. An additional 1,000,000 shares of common stock were issued on 4/1/11, and 500,000 more on 7/1/11. On 10/1/11, White issued 25,000, $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 2011. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

a. 5,000,000 and 5,000,000.

b. 5,000,000 and 5,125,000.

c. 5,000,000 and 5,500,000.

d. 5,500,000 and 6,500,000.

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