Refer to Practice 186. Assume that the options were issued on September 1 instead of being outstanding

Question:

Refer to Practice 18–6. Assume that the options were issued on September 1 instead of being outstanding throughout the year. Compute diluted earnings per share, assuming that

(1) The ending stock price for the year and for the September 1–December 31 period was $5 and (2) The ending stock price for the year and for the September 1– December 31 period was $14.