Chape Co. had the following information related to common and preferred shares during the year:Common shares outstanding, 1/1 700,000Common shares repurchased, 3/31 20,000 Conversion of preferred shares, 6/30 40,000 Common shares repurchased, 12/1 36,000Chape reported net income of $2,000,000 at December 31. What amount of shares should Chape use as the denominator in the computation of basic earnings per share?a. 684,000b. 700,000c. 702,000d. 740,000