Chapter 20, Problem 20.12BE

Computing Basic and Diluted EPS, Options. Nick’s Liquidators reported 450,000 shares of common stock outstanding for the year. The company also had stock options outstanding all year that will result in 125,000 incremental shares upon exercise. The company reported a net loss of $680,000 for the year, but income from continuing operations was equal to $1,500,000. Compute basic and diluted earnings per share for the year for both income from continuing operations and net loss.