FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 2017, Jackson Company had 100,000 shares of
common stock outstanding and 30,000 shares of 7%, $50 par,
cumulative preferred stock outstanding.
On February 28, 2018, Jackson purchased 24,000 shares of common
stock on the open market as treasury stock paying $45 per share.
Jackson sold 6,000 of the treasury shares on September 30, 2018,
for $47 per share.
Net income for 2018 was $180,905. Also outstanding at December
31, 2017, were fully vested incentive stock options giving key
personnel the option to buy 50,000 common shares at $40.
These stock options were exercised on November 1, 2018. The
market price of the common shares averaged $50 during 2018.
What is Jackson's diluted earnings per share (rounded to 2 decimal
places) for 2018?
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Transcribed Image Text:On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Jackson sold 6,000 of the treasury shares on September 30, 2018, for $47 per share. Net income for 2018 was $180,905. Also outstanding at December 31, 2017, were fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40. These stock options were exercised on November 1, 2018. The market price of the common shares averaged $50 during 2018. What is Jackson's diluted earnings per share (rounded to 2 decimal places) for 2018?
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