Stanley Department Stores reported net income of $801,000 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 $24.00) During the year, the market price of Stanley's common stock averaged $28.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $38,000 of 10% short-term bank notes. The company's income tax rate is 25%. 100,000 24,000 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)

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Chapter1: Financial Statements And Business Decisions
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K119.

 

Stanley Department Stores reported net income of $801,000 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 $24.00)
During the year, the market price of Stanley's common stock averaged $28.80 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $38,000 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
801
801
S
S
Answer is complete but not entirely correct.
Denominator
Earnings per Share
7.63
5.13
1
/
1
11
100,000
24,000
105✔ =
S
156 = S
Transcribed Image Text:Stanley Department Stores reported net income of $801,000 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 $24.00) During the year, the market price of Stanley's common stock averaged $28.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $38,000 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 801 801 S S Answer is complete but not entirely correct. Denominator Earnings per Share 7.63 5.13 1 / 1 11 100,000 24,000 105✔ = S 156 = S
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