Stanley Department Stores reported net income of $881,000 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 $26.50) During the year, the market price of Stanley's common stock averaged $31.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $43,000 of 10 % short-term bank notes. The company's income tax rate is 25%. 125,000 36,000 Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do
Stanley Department Stores reported net income of $881,000 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 $26.50) During the year, the market price of Stanley's common stock averaged $31.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $43,000 of 10 % short-term bank notes. The company's income tax rate is 25%. 125,000 36,000 Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stanley Department Stores reported net income of $881,000 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 $26.50)
During the year, the market price of Stanley's common stock averaged $31.80 per
share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $43,000 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 Denominator =
/
1
=
Earnings per Share
125,000
36,000
0
0
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