Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2024. On April 1, 2024, the company issued 30,000 shares of common stock. The company had outstanding fully vested incentive stock options for 6,000 shares exercisable at $11 that had not been exercised by its executives. The average market price of common stock was $13. The company reported net income in the amount of $279,915 for 2024. What is the basic earnings per share (rounded)? Multiple Choice $4.67 $3.11 $292 $3.39

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2024. On April 1, 2024, the
company issued 30,000 shares of common stock. The company had outstanding fully vested incentive stock
options for 6,000 shares exercisable at $11 that had not been exercised by its executives. The average market price
of common stock was $13. The company reported net income in the amount of $279,915 for 2024. What is the basic
earnings per share (rounded)?
Multiple Choice
$4.67
$3.11
$292
$3.39
Transcribed Image Text:Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2024. On April 1, 2024, the company issued 30,000 shares of common stock. The company had outstanding fully vested incentive stock options for 6,000 shares exercisable at $11 that had not been exercised by its executives. The average market price of common stock was $13. The company reported net income in the amount of $279,915 for 2024. What is the basic earnings per share (rounded)? Multiple Choice $4.67 $3.11 $292 $3.39
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