Question
JUST HELP WITH #3 On January 1, 2021, Gibson Industries had outstanding 440,000 common stock shares ($1 par) that originally sold for $20 per share
JUST HELP WITH #3
On January 1, 2021, Gibson Industries had outstanding 440,000 common stock shares ($1 par) that originally sold for $20 per share and 5,000 shares of 10% cumulative preferred stock ($100 par), convertible into 50,000 common stock shares. On October 1, 2021, Gibson issued and sold an additional 16,000 shares of common stoct at $41. At December 31, 2021, there were 25,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 25,000 common stock shares at an exercise price of $30. The market price at year-end 2021 was $48 per share. During the year the average common stock price was $40 per share. Net income was $650,000 for 2021. The income tax rate was 25% for 2021. REQUIRED: 1) Compute basic earnings per share for 2021. 2) Compute diluted earnings per share for 2021. 3) Identify the Order of Inclusion for dilutive securities.
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