At December 31, 2008, Norbett Company Had 500,000 Shares of Common

Multiple Choice

At December 31, 2008, Norbett Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2008. Net income for the year ended December 31, 2008, was $1,020,000. What should be Norbett's 2008 earnings per common share, rounded to the nearest penny?

A) $2.02
B) $2.55
C) $2.40
D) $2.27