Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000...

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Porter Corporation owns all 28,000 shares of the common stock ofStreet, Inc. Porter has 58,000 shares of its own common stockoutstanding. During the current year, Porter earns net income(without any consideration of its investment in Street) of $209,000while Street reports $181,000. Annual amortization of $13,000 isrecognized each year on the consolidation worksheet based onacquisition-date fair-value allocations. Both companies haveconvertible bonds outstanding. During the current year,bond-related interest expense (net of taxes) is $41,000 for Porterand $21,000 for Street. Porter’s bonds can be converted into 5,000shares of common stock; Street’s bonds can be converted into 7,000shares. Porter owns none of these bonds.
1. What are the basic earnings per share amounts that Portershould report in its current year consolidated income statement?(Round your answers to 2 decimal places.)
2. What are the diluted earnings per share? (Round your answersto 2 decimal places.)

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Solution Portex corporation income 28000 Portex outstanding shares 58000 Poetex reported income 209000 Street reported income 181000 Annual amortization 13000 Basic earning per share Particulars Amount Portex See Answer

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