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
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Chapter1: Financial Statements And Business Decisions
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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 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
Transcribed Image Text: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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