The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April1st, the company issued 20,000 shares of common stock. The company also has stock optionsoutstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. Theoptions were outstanding for the entire year but none were exercised. The end-of-year market price ofthe common stock was $13 per share while the average price for the year was $15 per share. Thecompany reported net income of $266,500 for the year. Basic earnings per share for the year is closestto: $4.10 $3.86 $3.81 $4.04

The Sailor Jerry Company had 50,000 shares of common stock outstanding on January 1st. On April1st, the company issued 20,000 shares of common stock. The company also has stock optionsoutstanding that can be exercised for 5,000 common shares at an exercise price of $12 per share. Theoptions were outstanding for the entire year but none were exercised. The end-of-year market price ofthe common stock was $13 per share while the average price for the year was $15 per share. Thecompany reported net income of $266,500 for the year. Basic earnings per share for the year is closestto: $4.10 $3.86 $3.81 $4.04

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 19EA: Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600...

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