Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000...

90.2K

Verified Solution

Question

Accounting

Porter Corporation owns all 30,000 shares of the common stock ofStreet, Inc. Porter has 65,000 shares of its own common stockoutstanding. During the current year, Porter earns net income(without any consideration of its investment in Street) of $232,000while Street reports $186,000. Annual amortization of $15,000 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 $49,000 for Porterand $41,000 for Street. Porter’s bonds can be converted into 9,000shares of common stock; Street’s bonds can be converted into 10,000shares. Porter owns none of these bonds.
What are the earnings per share amounts that Porter shouldreport in its current year consolidated income statement?(Round your answers to 2 decimal places.)

Answer & Explanation Solved by verified expert

3.9 Ratings (571 Votes)

Answer Calculation of Basic EPS Street is 100 subsidiary of porter So porter can report all earnings of street Inc in his Income Statement Porters Net Income 232000 Add Streets Net Income 186000 Less Annual See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member