On July 1, 20x2, Alan Enterprises merged with Terry Corporation through Terry Alan issued 200,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal to their fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Information relating to income for the companies is as follows Net Income Alan Enterprises Terry Corporation 2001 4,460,000 1,300,000 Net income Eamings per share Alan Enterprises had 1,000,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings per share (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year 20x1 January 1-June 10, 2082 $2,500,000 492.000 Required: Compute the net income and earnings-per-share amounts that would be reported in Alan's 20x2 comparative income statements for both 20X2 and 20X1. Note: Round earnings per share to 2 decimal places. July 1-December 31, 1.538.000 20x2
On July 1, 20x2, Alan Enterprises merged with Terry Corporation through Terry Alan issued 200,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal to their fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Information relating to income for the companies is as follows Net Income Alan Enterprises Terry Corporation 2001 4,460,000 1,300,000 Net income Eamings per share Alan Enterprises had 1,000,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings per share (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year 20x1 January 1-June 10, 2082 $2,500,000 492.000 Required: Compute the net income and earnings-per-share amounts that would be reported in Alan's 20x2 comparative income statements for both 20X2 and 20X1. Note: Round earnings per share to 2 decimal places. July 1-December 31, 1.538.000 20x2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![10
10
Exercise 1-23 (Static) Reporting Income LO 1-5
On July 1, 20x2, Alan Enterprises merged with Terry Corporation through an exchange of stock and the subsequent liquidation of
Terry, Alan issued 200,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal to
their fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Information
relating to income for the companies is as follows:
Net Income
Alan Enterprises
Terry Corporation
20x1
$4,460,000
1,300,000
Net income
Eamings per share
Alan Enterprises had 1,000,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings per
share (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year
2001
January 1-June 10, 20x2
$2,500,000
492.000
Required:
Compute the net income and earnings-per-share amounts that would be reported in Alan's 20X2 comparative income statements for
both 20x2 and 20X1.
Note: Round earnings per share to 2 decimal places.
July 1-ecember 31,
20x2
1.528.000
20x2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5de20a83-4ad8-4820-bfe3-379d0fc71782%2F1f903925-c474-441d-b049-85a03c7872cb%2F7p7bosj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10
10
Exercise 1-23 (Static) Reporting Income LO 1-5
On July 1, 20x2, Alan Enterprises merged with Terry Corporation through an exchange of stock and the subsequent liquidation of
Terry, Alan issued 200,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal to
their fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Information
relating to income for the companies is as follows:
Net Income
Alan Enterprises
Terry Corporation
20x1
$4,460,000
1,300,000
Net income
Eamings per share
Alan Enterprises had 1,000,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings per
share (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year
2001
January 1-June 10, 20x2
$2,500,000
492.000
Required:
Compute the net income and earnings-per-share amounts that would be reported in Alan's 20X2 comparative income statements for
both 20x2 and 20X1.
Note: Round earnings per share to 2 decimal places.
July 1-ecember 31,
20x2
1.528.000
20x2
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education