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How many additional shares would simpson include

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Simpson Corporation computed its diluted earnings per share for the year ended September 30. The company had 200,000 shares outstanding at the beginning of the year, issued 60,000 shares at April 1, and reacquired 2,000 shares to be held in its treasury on July 1. The company also had 2,000 options outstanding exercisable at $40 per share. The average market price of Simpson's shares during the year was $50. The common stock equivalents added to the company's weighted average shares outstanding used for basic earnings per share was computed using the treasury stock method. How many additional shares would Simpson include in its diluted earnings per share calculation?

A. 0 

B. 400 

C. 1,200 

D. 1,600

Reference no: EM131132293

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