Response to the following problem:
Venzuela Company's net income for 2017 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2016, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2017. The average market price of Venzuela's stock during 2017 was $20.