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Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition- date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000 for Porter and $21,000 for Street. Porter's bonds can be converted into 5,000 shares of common stock; Street's bonds can be converted into 7,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Earnings per Share Basic S 6.50 Diluted S 5.66

Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition- date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000 for Porter and $21,000 for Street. Porter's bonds can be converted into 5,000 shares of common stock; Street's bonds can be converted into 7,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Earnings per Share Basic S 6.50 Diluted S 5.66

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition- date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000 for Porter and $21,000 for Street. Porter's bonds can be converted into 5,000 shares of common stock; Street's bonds can be converted into 7,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Earnings per Share Basic $ 6.50 Diluted $ 5.66
Transcribed Image Text:Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition- date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000 for Porter and $21,000 for Street. Porter's bonds can be converted into 5,000 shares of common stock; Street's bonds can be converted into 7,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Earnings per Share Basic $ 6.50 Diluted $ 5.66
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