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Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2024.
Additional Information:
| Common shares outstanding at January 1, 2024 | 80,000 |
| Incentive stock options (vested in 2023) outstanding throughout 2024 | 24,000 |
| (Each option is exercisable for one common share at an exercise price of $37.50.) | |
| During the year, the market price of Stanleys common stock averaged $45 per share. | |
| On August 30, Stanley sold 15,000 common shares. | |
| Stanleys only debt consisted of $50,000 of 10% short-term bank notes. | |
| The companys income tax rate is 25%. | |
Required:
Compute Stanleys basic and diluted earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Answer & Explanation
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