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 $680,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of$280,000 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 $9.00 per share. The value of this stock was $18 per share throughout the year. Primus owns3,500 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 shareO< Prev312 of 3 BNext >ALL

Diluted earnings per share (EPS) is a financial metric that helps investors understand a company's…

Problem 6-34 (Algo) (LO 6-6) Primus, Incorporated, owns all outstanding stock of Sonston, Incorporated. For the current year, Primus reports net income (exclusiv of any investment income) of $680,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $280,000 for the period, with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding th allow the holder to acquire shares at $9.00 per share. The value of this stock was $18 per share throughout the year. Primus owns 3,500 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

Problem 6-34 (Algo) (LO 6-6) Primus, Incorporated, owns all outstanding stock of Sonston, Incorporated. For the current year, Primus reports net income (exclusiv of any investment income) of $680,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $280,000 for the period, with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding th allow the holder to acquire shares at $9.00 per share. The value of this stock was $18 per share throughout the year. Primus owns 3,500 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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