Research Case:$$ On July $1,2024,$ Taft Corporation acquired Warren Corporation. Taft Corporation is a private company.$$As part of the acquisition, the company had a contingent stock agreement stating that if the consolidated net income exceeds$$ $$1,100,000$ for the year ended December $31,2025,$ an additional $50,000$ shares of common stock will be issued on January $15,2026.$ Taft Corporation had $200,000$ shares of common stock outstanding during all of $2024$ Your role as the staff accountant is to determine the correct quantity of shares to include in the calculation of Basic EPS for the year ending December $31,2024.$

Accounting Issue$($s$)$:$$ Should the $50,000$ shares of common stock be included in the calculation of $$the $2024$ Basic $$EPS$?$ FASB Codification Reference$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$$ Question$1$:$$ Should the $50,000$ shares of common stock be included in the calculation of$$ the $2024$ Basic $$EPS$?$

a$.$ Yes

b$.$ No $$

Question$2$:$$ What is the correct number of shares of common stock that Taft should use to calculate Basic EPS?$$

a$.150,000$ shares of common stock

b$.200,000$ shares of common stock

c$.225,000$ shares of common stock

d$.250,000$ shares of common stock $$