Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $213,000 while Street reports $193,000. Annual amortization of $10,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $53,000 for Porter and $45,000 for Street. Porter's bonds can be converted into 7,000 shares of common stock; Street's bonds can be converted into 10,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Basic Diluted Answer is not complete. Earnings per Share $ 6.60
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $213,000 while Street reports $193,000. Annual amortization of $10,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $53,000 for Porter and $45,000 for Street. Porter's bonds can be converted into 7,000 shares of common stock; Street's bonds can be converted into 10,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Basic Diluted Answer is not complete. Earnings per Share $ 6.60
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 27P
Related questions
Question
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $213,000 while Street reports $193,000. Annual amortization of $10,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $53,000 for Porter and $45,000 for Street. Porter’s bonds can be converted into 7,000 shares of common stock; Street’s bonds can be converted into 10,000 shares. Porter owns none of these bonds.
What are the earnings per share amounts that Porter should report in its current year consolidated income statement?
Compute diluted EPS only.
Transcribed Image Text:Porter Corporation owns all 30,000 shares of the
common stock of Street, Inc. Porter has 60,000 shares
of its own common stock outstanding. During the
current year, Porter earns net income (without any
consideration of its investment in Street) of $213,000
while Street reports $193,000. Annual amortization of
$10,000 is recognized each year on the consolidation
worksheet based on acquisition-date fair-value
allocations. Both companies have convertible bonds
outstanding. During the current year, bond-related
interest expense (net of taxes) is $53,000 for Porter
and $45,000 for Street. Porter's bonds can be
converted into 7,000 shares of common stock; Street's
bonds can be converted into 10,000 shares. Porter
owns none of these bonds.
What are the earnings per share amounts that Porter
should report in its current year consolidated income
statement? (Round your answers to 2 decimal places.)
Basic
Diluted
Answer is not complete.
Earnings
per
Share
$ 6.60
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