On January 1, 2010, Edward Corporation Had 10,000 Shares of $6

Multiple Choice

On January 1, 2010, Edward Corporation had 10,000 shares of $6 par value ordinary share and 10,000 shares of 8%, $100 par value convertible preference share outstanding. The preference shares carried a 3 for 1 conversion privilege. On October 1, 2010, all of the preference shares were converted to ordinary. What number of shares must Edward use in computing basic earnings per share at December 31, 2010?

A) 17,500.
B) 40,000.
C) 7,500.
D) 10,000.