On January 1, 2020, Wertheim Company had 15, 000 shares of common stock outstanding and 7,500 shares of 8%$100 par, cumulative preferred stock outstanding. It also had stock options giving key personnel the option to buy 9,000 common shares at $25 each . Net income for 2020 was $82,000. The income tax rate is 30 %. During 2020, the average market price of the common shares was $ 45 Compute the 2020 diluted earnings per share for Wertheim Company :

On January 1, 2020, Wertheim Company had 15,000 shares of common stock outstanding and 7.500 shares of 8%, 5100 par, cumulative preferred stock outstanding. It also had stock options wlving key personnel the option to buy 9,000 common shares at $25 each. Net income for 2020 was $32,000. The income tax rate is 30% During 2020, the average market price of the common shares was $45. Compute the 2020 diluted earnings per share for Wertheim Company: O $1.83 O $0.98 $1.16 O $0.81