Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income ( exclusive of any investment income ) of

image text in transcribed
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $560,000. Primus has 100,000 shares of common stock outstanding.Sonston reports net income of $160,000 for the period, with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $12.00 per share.The value of this stock was $24 per share throughout the year. Primus owns 2,100 of these warrants.
What amount should Primus report for diluted earnings per share?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

12th edition

1119386209, 978-1119299349, 1119299349, 1119186331, 978-1119186335, 978-1119386209

More Books

Students also viewed these Accounting questions

Question

International trade in services is determined by what factors?

Answered: 1 week ago