Computing year-end earnings per share

Reference no: EM13129805

On January 1, Toga Corporation granted stock options to top management. The options are exercisable within 4 years from the date of grant only if the employees are still in Toga's employ. When computing year-end earnings per share at December 31, Toga should:

a) Exclude the options until the year they are exercisable.

b) Exclude the options from basic earnings per share but include them in diluted earnings per share.

c) Include the options in both basic earnings per share and diluted earnings per share if they are dilutive.

d) Include the options in both basic earnings per share and diluted earnings per share if they are antidilutive.

Reference no: EM13129805

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