11. Laurelli Builders (LB) reported the financial data shown in Exhibit 1 for year-end 31 December:

Exhibit 1: Laurelli Builders Common shares outstanding, 1 January 2,020,000 Common shares issued as stock dividend, 1 June 380,000 Warrants outstanding, 1 January 500,000 Net income USD3,350,000 Preferred stock dividends paid USD430,000 Common stock dividends paid USD240,000 Which statement about the calculation of LB’s EPS is most accurate?

A. LB’s basic EPS is USD1.12.

B. LB’s diluted EPS is equal to or less than its basic EPS.

C. The weighted average number of shares outstanding is 2,210,000.