FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Stanley Department Stores reported net income of $1,010,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding at Jan. 1, 2021 | 155,000 |
Incentive stock options (vested in 2020) outstanding throughout 2021 | 36,000 |
(Each option is exercisable for one common share at an exercise price of $29.50) | |
During the year, the market price of Stanley’s common stock averaged $35.40 per share. | |
On Aug. 30, Stanley sold 15,000 common shares. | |
Stanley’s only debt consisted of $49,000 of 10% short-term bank notes. | |
The company’s income tax rate is 25%. | |
Required:
Compute Stanley’s basic and diluted earnings per share for the year ended December 31, 2021
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