a. 1. The date on which to measure the compensation element in a stock option granted to a corporate employee ordinarily is the date on which the employee is granted the option. has performed all conditions precedent to exercising the option. may first exercise the option. d. exercises the option. b. c. Answer 1: 2. At December 31, 2019, Hancock Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2019. Net income for the year ended December 31, 2019, was $1,020,000. What should be Hancock's 2019 earnings per common share, rounded to the nearest penny? Answer Calculations: $2.02 b. $2.55 $2.40 d. $2.27 a. c. Answer 2: 3. On January 1, 2019, Gridley Corporation had 125,000 shares of its $2 par value common stock outstanding. On March 1, Gridley sold an additional 250,000 shares on the open market at $20 per share. Gridley issued a 20% stock dividend on May 1. On August 1, Gridley purchased 140,000 shares and immediately retired the stock. On November 1, 200,000 shares were sold for $25 per share. What is the weighted average number of shares outstanding for 2019? Answer Calculations: 510,000 375,000 358,333 d. 258,333 a. b. c. Answer 3: 4. At December 31, 2018 Pine Company had 200,000 shares of common stock and 10,000 shares of 4%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2018 or 2019. On February 10, 2020, prior to the issuance of its financial statements for the year ended December 31, 2019, Pine declared a 100% stock split on its common stock. Net income for 2019 was $720,000. In its 2019 financial statements, Pine's 2019 earnings per common share should be Answer Calculations: $3.40. b. $3.20. $1.70. d. $1.00. a. c. Answer 4