On December 31, 2023, Brisbane Company had 100,000 shares of common stock outstanding and 25,000 shares of cumulative preferred stock outstanding. On February 28, 2024, Brisbane purchased 19,000 shares of common stock on the open market as treasury stock paying $35 per share. Brisbane sold 5,500 treasury shares on September 30, 2024, for $40 per share. Ne income for 2024 was $175,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 45,000 common shares at $35. The market price of the common shares averaged $45 during 2024. Required: Compute Brisbane's basic and diluted earnings per share for 2024. Note: Do not round intermediate calculation. Round your answers to 2 decimal places. Basic Diluted Earnings per share
On December 31, 2023, Brisbane Company had 100,000 shares of common stock outstanding and 25,000 shares of cumulative preferred stock outstanding. On February 28, 2024, Brisbane purchased 19,000 shares of common stock on the open market as treasury stock paying $35 per share. Brisbane sold 5,500 treasury shares on September 30, 2024, for $40 per share. Ne income for 2024 was $175,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 45,000 common shares at $35. The market price of the common shares averaged $45 during 2024. Required: Compute Brisbane's basic and diluted earnings per share for 2024. Note: Do not round intermediate calculation. Round your answers to 2 decimal places. Basic Diluted Earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2023, Brisbane Company had 100,000 shares of common stock outstanding and 25,000 shares of 7%, $50 par,
cumulative preferred stock outstanding. On February 28, 2024, Brisbane purchased 19,000 shares of common stock on the open
market as treasury stock paying $35 per share. Brisbane sold 5,500 treasury shares on September 30, 2024, for $40 per share. Net
income for 2024 was $175,905. Also outstanding during the year were fully vested incentive stock options giving key officers the
option to buy 45,000 common shares at $35. The market price of the common shares averaged $45 during 2024.
Required:
Compute Brisbane's basic and diluted earnings per share for 2024.
Note: Do not round intermediate calculation. Round your answers to 2 decimal places.
Basic
Diluted
Earnings per
share
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