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4) Didde Co. had 300,000 shares of common stock issued
and outstanding at December 31, 2014. No common stock was
issued during 2015. On January 1, 2015, Didde issued 200,000
shares of nonconvertible preferred stock. During 2015, Didde
declared and paid $75,000 cash dividends on the common stock
and $60,000 on the preferred stock. Net income for the year
ended December 31, 2015 was $465,000. What should be
Didde's 2015 earnings per common share?

5) Weiser Corp. on January 1, 2012, granted stock options
for 40,000 shares of its $10 par value common stock to its key
employees. The market price of the common stock on that date
was $23 per share and the option price was $20. The BlackScholes option pricing model determines total compensation
expense to be $420,000. The options are exercisable beginning
January 1, 2015, provided those key employees are still in
Weiser’s employ at the time the options are exercised. The
options expire on January 1, 2016.

On January 1, 2015, when the market price of the stock was $29
per share, all 40,000 options were exercised. The amount of