Problem 6-34 (Algo) (LO 6-6)Primus, Incorporated, owns all outstanding stock of Sonston, Incorporated. For the current year, Primus reports net income (exclusiveof any investment income) of $576,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of$176,000 for the period, with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding thatallow the holder to acquire shares at $12.00 per share. The value of this stock was $24 per share throughout the year. Primus owns3,000 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.Diluted earnings per share

Deluted earnings per share (EPS) is a measurement of a company's earnings per share if all…

Answered: imus, Incorporated, owns all outstan…

imus, Incorporated, owns all outstan any investment income) of $576,00 76,000 for the period, with 40,000 s ow the holder to acquire shares at $ 000 of these warrants.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 $576,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of
$176,000 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
3,000 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.
Diluted earnings per share

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