hard · Financial Accounting

An entity has $500,000 basic shares outstanding. It also has $20,000 stock options with an exercise price of $30 per share. During the period, the average market price of the common stock is $50 per share.

What is the diluted shares denominator for EPS purposes using the treasury stock method?

  1. 520,000
  2. 500,000
  3. 508,000
  4. 512,000

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