Coren, Inc. had 500,000 common shares issued and outstanding at December 31, 2001. On July 1,
2 002, an additional 50,000 common shares were issued for cash. Coren also had unexercised stock options to purchase 40,000 common shares at $15 per share outstanding at the beginning and end of
2 002. The average market price of Coren's common shares was $20 during 2002. What is the number of shares that should be used in calculating diluted earnings per share for the year ended December 31,
2 002?