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

  Explain the shapes of the aggregate demand curve

Explain the shapes of the aggregate demand curve and the aggregate supply curve, and how they interact to determine real GDP and the price level for a nation

  Variable costs per composite unit

Handy Home sells windows and doors in the ratio of 8:2 (windows: doors).

  Complete statement of cash inflows and cash outflows

Prepare and complete statement of cash inflows and cash outflows from operating activities according to the indirect method.

  Compute paisley company free cash flow for the current year

Compute Paisley Company's free cash flow for the current year.

  Compute the overhead application rate for total overhead

World Company expects to operate at 80% of its productive capacity of 50,000 units per month.

  Explain why operating income is different in parts e and f

Assume that the firm adds another product to its product line and that the new product sells for $20 per unit, has variable costs of $14 per unit, and causes fixed expenses in total to increase to $63,000 per month. Calculate the firm's operating inc..

  Prepare in journal form the entry to record each transaction

Prepare in journal form the entry to record each transaction and Paid the balance due on the office equipment.

  Calculate the depreciation expense for the year

Management is considering depreciating the ties using the group method for 2011. Calculate the depreciation expense for the year on the ties using the group method and compute the group depreciation rate for 2011.

  Plus the company stops the projects and sells

Plus the company stops the projects and sells off the project for an additional $16 Million inflow. Thus, total inflows at year ten equals $28 Million.

  Explain one possible advantage to having two cost

Explain one possible advantage to having two cost pools for each service department: one for variable costs and one for fixed costs.

  Cain on the sale of used delivery truck

Purchase of a new computer system ______. Loss on retirement of bonds ______.Cain on the sale of used delivery truck ______. Increase in prepaid insurance ______.

  Possible customer returns or account adjustments

On July 15, Mann Company sold $600,000 in accounts receivable for cash of $500,000. The factor withheld 10% of the cash proceeds to allow for possible customer returns or account adjustments. An Allowance for Bad Debts of $80,000 had previously been ..

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