text: Basic earnings per share are based on the weighted-average number of  ***S T O C K - B A S E D C O M P E N S A T I O N***
  
  The Company accounts for its stock option plan using Accounting  common shares outstanding during the year. Shares potentially issu- 
  
  Principles Board Opinion No. 25, “Accounting for Stock Issued to  able under options and deferred restricted stock have been considered 
  
  Employees,” whereby stock-based employee compensation is reflected  outstanding for purposes of the diluted earnings per share calculation. 
  
  in net income as all options granted under the plan had an exercise 
  ***U S E O F E S T I M A T E S***
  price equal to the market value of the underlying common stock 
  The preparation of financial statements in conformity with accounting 
  on the date of grant. SFAS No. 123, “Accounting for Stock-Based 
  principles generally accepted in the United States requires manage- 
  Compensation” issued subsequent to APB No. 25 and amended by 
  ment to make estimates and assumptions that affect the amounts 
  SFAS No. 148, “Accounting for Stock-Based Compensation — Trans- 
  reported in the financial statements and accompanying notes. The 
  ition and Disclosure” defines a fair value-based method of accounting 
  more significant areas requiring the use of management estimates 
  for employees’ stock options but allows companies to continue to 