Company P has 100,000 shares of outstanding common stock. Subsidiary Company S has a net income of
Question:
Company P has 100,000 shares of outstanding common stock. Subsidiary Company S has a net income of $60,000 and 40,000 shares of outstanding common stock.
Company P owns 100% of the Company S shares. What is consolidated diluted EPS, if:
a. Company S has outstanding stock options for Company S shares, which cause a dilutive effect of 2,000 additional shares of Company S shares?
b. Company S has outstanding stock options for Company P shares, which cause a dilutive effect of 2,000 additional shares of Company P shares?
c. Company P has outstanding stock options for Company P shares, which cause a dilutive effect of 2,000 additional shares of Company P shares?
Step by Step Answer:
a Consolidated DEPS 200000 40000 X 143 100000 shares 257 Subsi...View the full answer
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
