At December 31, 2016, Skye Inc. had 500,000 common shares outstanding (no preferred shares issued). On July
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At December 31, 2016, Skye Inc. had 500,000 common shares outstanding (no preferred shares issued). On July 1, 2017, an additional50,000 common shares were issued. Skye also had unexercised call options to purchase 40,000 common shares at $15 per share outstanding throughout 2017. The average market price of Skye's common shares was$20 during 2017. The number of shares that should be used in calculating diluted earnings per share for 2017 is
a) 525,000.
b) 535,000
c) 560,000.
d) 565,000.
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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