At December 31, 2020, Spearmint Inc

question 57

Multiple Choice

At December 31, 2020, Spearmint Inc. had 300,000 common shares outstanding (no preferred shares issued) . In addition, the corporation had granted 90,000 stock options to certain executives, and which gave them the right to purchase Spearmint's shares at the option price of $ 37 per share. None of these options have yet been exercised. The average market price of Spaniel's common shares during 2020 was $ 50. What is the number of shares that should be used in calculating diluted earnings per share for 2020?

• A) 300,000
• B) 323,400
• C) 331,622
• D) 366,600

---

Definitions:

Installment Contract

A contract that allows for payment or delivery of goods in portions at specified intervals over a period rather than in a single lump sum.

Apportioned

Divided and distributed in proportions or specific amounts according to a defined scheme or calculation.

Perfect Tender Rule

A legal principle under the Uniform Commercial Code that requires sellers to deliver goods to buyers exactly as specified in their contract, without any deviations.

Tender Of Performance

An offer by one party involved in a contract to perform their obligation, demonstrating readiness to fulfill the terms of the contract.