Business combination: Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations. Book value: Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization. Basic earnings per share (BEPS): The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company. Diluted earnings per share (DEPS): The diluted earnings per share is the earning per share when all the convertible options are used. The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

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Answer 1

Question

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

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Answer 2

Question

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

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Answer 3

Question

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Answer 6

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

Answer 7

Chapter 6, Problem 5UTI

a.

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Book value:

Book value of the asset is found out after deducting accumulated depreciation from the recorded value of the asset. Recorded value is the value at asset enters the books of account of the organization.

Basic earnings per share (BEPS):

The part of profit which is allocated to each outstanding share of the company is called basic earnings per share. It is computed by dividing the net income after tax with the number of outstanding shares of the company.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company S.

Answer 8

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

Answer 9

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

Answer 10

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Answer 11

c.

To determine

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 6 - Prob. 1UTI Ch. 6 - Prob. 2UTI Ch. 6 - Prob. 3UTI Ch. 6 - Prob. 4UTI Ch. 6 - Prob. 5UTI Ch. 6 - Prob. 6UTI Ch. 6 - Prob. 7UTI Ch. 6 - Prob. 1E Ch. 6 - Prob. 2E Ch. 6 - Prob. 3E

Solution Summary: The author explains how business combination leads to the formation of combined financial statements. Basic earnings per share is calculated by dividing the net income after tax with the number of outstanding shares of the company.

Concept explainers

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Want to see the full answer?

Chapter 6 Solutions

Solution Summary: The author explains how business combination leads to the formation of combined financial statements. Basic earnings per share is calculated by dividing the net income after tax with the number of outstanding shares of the company.

Concept explainers

Diluted earnings per share (DEPS): The diluted earnings per share is the earning per share when all the convertible options are used. The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

Diluted earnings per share (DEPS): The diluted earnings per share is the earning per share when all the convertible options are used. The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.

Want to see the full answer?

Chapter 6 Solutions

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company S has outstanding stock options of parent company that led to a dilutive effect of additional 2,000 shares of Company P.

Diluted earnings per share (DEPS):

The diluted earnings per share is the earning per share when all the convertible options are used.

The consolidated diluted EPS when Company P has outstanding stock options of its own company that led to a dilutive effect of additional 2,000 shares of Company P.