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

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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 $253,000while Street reports $201,000. Annual amortization of $12,000 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 $55,000 for Porterand $51,000 for Street. Porter’s bonds can be converted into 8,000shares 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.)
Basic EPS:
Diluted EPS:

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4.1 Ratings (475 Votes)

Answer Basic EPS 68 Diluted EPS 668 Working Computation of basic EPS Particular Amount Porters reported Income 253000 Streets reported Income 201000 Amortization expense 12000 Consolidated Net Income A 442000 Porters shares outstanding B 65000 Basic earning per share See Answer

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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 $253,000while Street reports $201,000. Annual amortization of $12,000 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 $55,000 for Porterand $51,000 for Street. Porter’s bonds can be converted into 8,000shares 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.)Basic EPS:Diluted EPS: