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Problem 6-34 (Algo) (LO 6-6) Primus, Incorporated, owns all outstanding stock of Sonston, Incorporated. For the current year, Primus reports net income (exclusive of
Problem 6-34 (Algo) (LO 6-6) Primus, Incorporated, owns all outstanding stock of Sonston, Incorporated. For the current year, Primus reports net income (exclusive of any investment income) of $624,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $224,000 for the period, with 50,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $7.50 per share. The value of this stock was $15 per share throughout the year. Primus owns 4,500 of these warrants. Required: What amount should Primus report for diluted earnings per share? Note: Round your intermediate percentage value to the nearest whole number and the final answer to 2 decimal places.
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