During the year, Rigby Corporation earned revenues of $114,000 and incurred $98,000 for various operating expenses. There are 1,280 shares of stock outstanding. Earnings per share is

Question

Quizplus · Accepted Answer

To calculate the earnings per share, we need to divide the total earnings by the number of outstanding shares.

Total earnings = Revenues - Operating expenses 
Total earnings = $114,000 - $98,000 = $16,000

Earnings per share = Total earnings / Number of outstanding shares 
Earnings per share = $16,000 / 1,280 = $12.50

Therefore, the correct answer is choice B) $12.50.

During the Year, Rigby Corporation Earned Revenues of $114,000 and Incurred