AICPA Adapted 6. On January 1, 20X8, Hage Corporation granted options to purchase 9,000 of its common shares at $7 each. The market price of common was $10.50 per share on December 31, 20X8, and averaged $9 per share during the year. There was no change in the 50,000 shares of outstanding common stock during the year ended December 31, 20X8. Net income for the year was $8,268. The number of shares to be used in computing basic earnings per share for the quarter is: a. 59,000 Show work b. 50,000 c. 53,000 d. 52,000 7. Assume the same facts as in item 6. The number of shares to be used in computing diluted earnings per share for the quarter is: a. 53,000 show work b. 50,000 c. 52,000 d. 59,000 8. An antidilutive common stock option is: Included in computing A potential common stock diluted earning per share No No No Yes Yes No Yes Yes 9. In a dilutive earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would: a. Fairly present primary earnings per share on a prospective basis. b. Fairly present the maximum potential dilution of primary earnings per share on a prospective basis. c. Reflect the excess of the number of shares assumed issued over the number of shares assumed reacquired as the potential dilution of earnings per share. d. Be anti-dilutive