Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2021. Additional Information: Common shares outstanding at Jan. 1, 2021 Incentive stock options (vested in 2020) outstanding throughout 2021 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.40 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $34,000 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. (Enter your answers in thousands. Do not round intermediate calculations) Basic Diluted Numerator 1 1 1 Denominator = = = 75,000 12,000 Earnings per Share
Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2021. Additional Information: Common shares outstanding at Jan. 1, 2021 Incentive stock options (vested in 2020) outstanding throughout 2021 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.40 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $34,000 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. (Enter your answers in thousands. Do not round intermediate calculations) Basic Diluted Numerator 1 1 1 Denominator = = = 75,000 12,000 Earnings per Share
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
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![Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding at Jan. 1, 2021
Incentive stock options (vested in 2020) outstanding throughout 2021
(Each option is exercisable for one common share at an exercise price of $22.00)
During the year, the market price of Stanley's common stock averaged $26.40 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $34,000 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. (Enter your answers in
thousands. Do not round intermediate calculations)
Basic
Diluted
Numerator I
1
1
Denominator
=
=
75,000
12,000
Earnings per Share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2F0e8b3342-520c-46dc-810c-fb9bed2f0467%2Fwokhx74_processed.png&w=3840&q=75)
Transcribed Image Text:Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding at Jan. 1, 2021
Incentive stock options (vested in 2020) outstanding throughout 2021
(Each option is exercisable for one common share at an exercise price of $22.00)
During the year, the market price of Stanley's common stock averaged $26.40 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $34,000 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. (Enter your answers in
thousands. Do not round intermediate calculations)
Basic
Diluted
Numerator I
1
1
Denominator
=
=
75,000
12,000
Earnings per Share
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