5. value: 5.00 points On January 1, 2016, Hage Corporation granted incentive sto

Question

5. value: 5.00 points On January 1, 2016, Hage Corporation granted incentive stock options to purchase 23,000 of its common shares at $9 each. The options are exercisable after one year. The market price of common averaged $12 per share during the quarter ending on March 31, 2016. There was no change in the 175,000 shares of outstanding common stock during the quarter ended March 31, 2016. Net income for the quarter was $8,768. The number of shares to be used in computing diluted earnings per share for the quarter is (Round your final answer to whole number.): O 192,250 O 198,000 O 180,750 175,000.

Explanation / Answer

Shares assumed to be repurchased=(23000*9)/12= 17250 Number of shares for diluted earnings = 175000+(23000-17250)= 180750 Option 3 is correct

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