Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. richardson co. has 30,000 of common shares outstan

Richardson Co. has 30,000 of common shares outstanding and owned 80% if the common stock...

50.1K

Verified Solution

Question

Accounting

Richardson Co. has 30,000 of common shares outstanding and owned 80% if the common stock of Plano Co. Plano had 20,000 shares of $5 par value common stock and no share of preferred stock outstanding. Plano also had convertible bonds outstanding, which are convertible into 4,000 shares of common stock. Plano's annual after-tax interest expense for the bonds was $4,000. Richardson did not own any of Plano's bonds. Plano reported net income of $40,000 for the year and Richardson reported net income of $105,000 (excludes any income recorded from the investment in Plano). Richardson's consolidated diluted earnings per share (rounded) is calculated to be?

Answer & Explanation Solved by verified expert
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

Other questions asked by students