The Following Information Applies to the Next Three Questions

question 68

Multiple Choice

The following information applies to the next three questions:
Tangier Corporation currently has stock rights outstanding for 2,000 common shares.The exercise price of these shares is $25.The options were issued in January of 2012.The average market price of the related common stock during the year 2012 was $30.The average market price of the related common stock during 2013 was $26 and during 2014 was $21.The company's fiscal year ends on December 31 of each year.
-How should these stock rights be treated in the earnings per share calculation for the year ending December 31,2014?

• A) The stock options are antidilutive and should not be included in basic or diluted earnings per share.
• B) The stock options are dilutive and should be included in diluted earnings per share in the amount of 381 shares.
• C) The stock options are dilutive and should be included in diluted earnings per share in the amount of 2,000 shares.
• D) The stock options are dilutive and should be included in diluted earnings per share in the amount of 333 shares.

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Electrical Storm

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A sidewalk covered in ice, creating a potential hazard for pedestrians.

Liable

Refers to the legal responsibility or obligation to do something or to make amends for something.