Question
Company P has internally generated net income of $200,000 (excludes share of subsidiary income). Company P has 100,000 shares of outstanding common stock. Subsidiary Company
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?
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
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