As of January 1, 2011, Anvil Corporation had 25,000 shares of $10 par common stock outstanding. The

Question:

As of January 1, 2011, Anvil Corporation had 25,000 shares of $10 par common stock outstanding. The company had issued stock options in 2009 to its management personnel, permitting them to acquire 4,000 shares of common stock at $12 per share.

At the time of the issuance, common stock was selling for $12 per share. The market price of common stock was $25 on September 1, 2011, and the ending price for 2011 was $27. Income before extraordinary items for 2011 was $142,400. The company also had an extraordinary gain of $21,000, net of taxes. Terms of the options make them currently exercisable. On September 1, 2011, options to acquire 1,500 shares were exercised. The other 2,500 options are still outstanding at December 31, 2011.

Instructions:

Compute basic and diluted EPS for the year ended December 31, 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...