Question: On January 1 , 2 0 2 4 , Wertheim Company had 6 0 , 0 0 0 shares of common stock outstanding and 2

On January 1,2024, Wertheim Company had 60,000 shares of common stock outstanding and 20,000 shares of 8%,$40 par, cumulative preferred stock outstanding. It also had stock options giving key personnel the option to buy 16,000 common shares at $22 each. Net income for 2024 was $185,000. The income tax rate is 25%. During 2024, the average market price of the common shares was $42.
Compute the 2024 diluted earnings per share for Wertheim Company:
On January 1,2024, Wertheim Company had 60,000 shares of common stock

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