The Following Information Relates to the Simplex Company for 2011

question 60

Multiple Choice

The following information relates to the Simplex Company for 2011:

What is diluted earnings per share?

• A) $1.00
• B) $0.89
• C) $0.81
• D) $0.76

---

Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life, resulting in consistent annual charges.

Double Declining Balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate, allowing for more depreciation in the early years of an asset's life.

Activity Method

An approach to calculating depreciation for an asset based on its actual usage, wear and tear, rather than an arbitrary time frame.

Depreciation Expense

Systematically dividing the cost of a tangible asset over its estimated useful life.