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Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any income) of $664,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $264,000 d with 10.000 hao 5 000 sto ading the ding Const

Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any income) of $664,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $264,000 d with 10.000 hao 5 000 sto ading the ding Const

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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Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $664,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $264,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 5,000 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 2,850 of these warrants. What amount should Primus report for diluted earnings per share? (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:Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $664,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $264,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 5,000 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 2,850 of these warrants. What amount should Primus report for diluted earnings per share? (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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