Overland,Inc

question 56

Multiple Choice

Overland,Inc.had 150,000 shares of common stock issued and outstanding at December 31,2013.On July 1,2014,an additional 25,000 shares of common stock were issued for cash.Overland also had unexercised stock options to purchase 20,000 shares of common stock at $15 per share outstanding at the beginning and end of 2014.The market price of Overland's common stock was $20 throughout 2014.What number of shares should be used in computing diluted earnings per share for the year ended December 31,2014?

• A) 182,500
• B) 180,000
• C) 167,500
• D) 177,500

---

Definitions:

Annuity Payments

Regular payments made from an investment that was designed to provide an income over a period of time.

RRSP

Registered Retirement Savings Plan, a Canadian government-approved program to help residents save for retirement.

Compounded Annually

The method by which interest is calculated once per year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

Compounded monthly refers to the process of accruing interest on an investment or loan where the interest earned is added to the principal amount at the end of each month, allowing the interest to itself earn interest in subsequent months.