What are the earnings per share amounts

Assignment Help Managerial Accounting
Reference no: EM13971731

Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 60,000 shares of its own common stock outstanding. During the current year, Porter earns income (without any consideration of its investment in Street) of $150,000 while Street reports $130,000. Annual amortization of $10,000 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, interest expense (net of taxes) is $32,000 for Porter and $24,000 for Street. Porter's bonds can be converted into 8,000 shares of common stock; Street's bonds can be converted into 10,000 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? 

Reference no: EM13971731

Questions Cloud

How are daoism and confucianism similar : 1. How are Daoism and Confucianism similar? How are they different? Your response should be at least 150 words in length. 2. What role does nature play in the Shinto religion? Your response should be at least 150 words in length.
Analyze the benefits of your unique combination of learning : Analyze the benefits of your unique combination of Learning Patterns by identifying strategies specific to each Learning Pattern that you used to complete readings, discussions, assignments, and quizzes in this course. Describe how you took advant..
What sort of wisdom does socrates claim : What sort of wisdom does Socrates claim he does not possess? Is the claim that he does not possess this sort of wisdom coherent with his behavior in the Euthyphro? Does anyone possess this sort of wisdom?
Why target overlooked or ignored the red flag(s). : Conclude the main reasons why the attack on Target occurred. Give your opinion as to whether or not the attack was mainly due to the poor infrastructure or the inability of management to act accordingly. Justify your response.
What are the earnings per share amounts : Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement?
Npv for epiphany project : The free cash flow for the first year of Epiphany's project is closest to: The NPV for Epiphany's Project is closest to:
What is the value of the firm if you ignore taxes : The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock. What is the value of this firm if you ignore taxes?
Calculate circumference and area of the circle. : What are the two most important benefits of the Java language?
Determining the incremental cash flow projects : Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental ca..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Discuss the effect this might have on the selection

Discuss the effect this might have on the selection of an allocation base for the application of overhead.

  Unit product cost for the month under absorption costing

What is the unit product cost for the month under variable costing and what is the unit product cost for the month under absorption costing?

  Prepare journal entries that summarize the sales

Prepare journal entries that summarize the sales and any aspects of the warranty for 2011 and the warranty for 2012.

  Calculating break even in units

A company has fixed costs of $5000. Sales for 600 units have been made. The budgeted unit details are-What is the cost of the materials used in process 2 during the month?

  How many gallons of direct materials should be purchased

How many gallons of direct materials should be purchased during the three months ending March 31?

  Complete cash flow statement for company using direct method

Complete a cash flow statement for the company using the direct method - What does this statement of cash flow tell you about the sources and uses of the company funds?

  Job order costing-production report

Which if the following statements are correct?

  Why did franz take this step

What is meant by budget padding?  Why did Franz take this step? What is the effect of this action on shareholder value?

  Estimate the companys total variable cost

Estimate the company's total variable cost per unit and its total fixed costs per year and compute the company's contribution margin for July.

  Prepare profit reports for software and consulting assuming

Which provides the best information on profitability: a single overhead cost pool with head- count as the allocation base, or multiple cost pools using headcount, sales, and space occupied?

  Who is the president and ceo

Although the founder of the company, who is the president and CEO, is a great artisan, she has very limited knowledge of accounting.

  Explain the difference between variable costing

Explain the difference between variable costing and absorption costing net operating income in year 1. Also, explain why the two net operating incomes differ in year 2.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd