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 net income (without any consideration of its investment in Street) of $213,000 while Street reports $193,000. 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, bond-related interest expense (net of taxes) is $53,000 for Porter and $45,000 for Street. Porter's bonds can be converted into 7,000 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? (Round your answers to 2 decimal places.) Basic Diluted Answer is not complete. Earnings per Share $ 6.60

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 net income (without any consideration of its investment in Street) of $213,000 while Street reports $193,000. 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, bond-related interest expense (net of taxes) is $53,000 for Porter and $45,000 for Street. Porter's bonds can be converted into 7,000 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? (Round your answers to 2 decimal places.) Basic Diluted Answer is not complete. Earnings per Share $ 6.60

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

See similar textbooks

Similar questions

Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $239,000 while Street reports $191,000. Annual amortization of $14,000 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, bond-related interest expense (net of taxes) is $51,000 for Porter and $43,000 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? (Round your answers to 2 decimal places.) Basic and diluted
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 net 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, bond-related 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?
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 net income (without any consideration of its investment in Street) of $177,000 while Street reports $157,000. 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, bond-related interest expense (net of taxes) is $41,000 for Porter and $33,000 for Street. Porter’s bonds can be converted into 7,000 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? (Round your answers to 2 decimal places.) Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has…
On January 1, Coldwater Company has a net book value of $2,174,000 as follows:Westmont Company acquires all outstanding preferred shares for $214,000 and 60 percent of the common stock for $1,253,280. The acquisition-date fair value of the noncontrolling interest in Coldwater’s common stock was $835,520. Westmont believed that one of Coldwater’s buildings, with a 12-year remaining life, was undervalued by $63,600 on the company’s financial records.What amount of consolidated goodwill would be recognized from this acquisition?a. $61,600b. $65,200c. $60,400d. $59,200
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $283,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $20,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $5,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Presidio Company $ 84,600 326,000 387,000 Items Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock-$1 par value on stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 218,000 463,000 253,000 (152,000) (433,000) (110,000) (360,000) (676,600) Mason Company $ 32,400 133,000 169,000 230,000 271,000 50,400 (45,600) (283,000) 0 (120,000) (437,200) 0 Note: Parentheses…
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $306,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $27,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Presidio Company $ 66,600 362,000 362,000 213,000 515,000 Cash Items Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities 168,000 (193,000) (454,000) (110,000) Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 Note: Parentheses indicate a credit balance. 0 (360,000) (569,600) Mason Company $ 28,800 166,000 206,000 184,000 292,000 74,100 (61,800)…
On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000 cash. The fair value of the noncontrolling interest at that date was determined to be $175,000. At December 31, 2020, Pail reported on its general ledger Investment in Sand at $616000. What amount of Investment in Sand would be reported on the 12/31/20 consolidated Balance Sheet? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $273,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $21,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $6,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Items Presidio Company $ 62,100 $ 38,400 344,000 386,000 276,000 170,000 150,000 222,000 233,000 58,500 (66,300) 441,000 11 205,000 (192,000) (507,000) (273,000) (110,000) 0 (120,000) (360,000) (545,100) (412,600) Mason Company Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 Note:…
Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2019. Adams paid a total of $603,000 in cash for these shares. The 10 percent noncontrolling interest shares traded on a daily basis at fair value of $67,000 both before and after Adams's acquisition. On December 31, 2019, Barstow had the following account balances: Current assets Land Buildings (10-year remaining life) Equipment (5-year remaining life) Patents (10-year remaining life) Notes payable (due in years) Common stock Retained earnings, 12/31/19 Debits Current assets Land Buildings. Equipment Investment in Barstow, Inc. Cost of goods sold Depreciation expense December 31, 2021, adjusted trial balances for the two companies follow: Adams Corporation Interest expense Dividends declared Total debits Credits Notes payable Common stock Retained earnings, 1/1/21 Revenues Investment income Total credits Book Value $ 160,000 120,000 220,000 160,000 $ 0 (200,000) (180,000) (280,000)…
On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of P50 (current fair value is P60). The following are expenses incurred and paid by SG Corporation in connection with the business combination on the date of acquisition: Underwriting costs, P10,000; Consultant’s Fees, 20,000; Newspaper publication fees, 5,000; SEC registration fees, 8,000; Stock exchange listing fees, 6,000; Indirect acquisition costs, 12,000. Balance sheet of Popsters shows assets of P2,800,000 and liabilities of P400,000. 1. How much is the goodwill or (gain on bargain purchase) on the date of acquisition if Inventories of Popsters is undervalued by P200,000 and a liability is overvalued by 100,000? 2. How much is the capitalized cost of investment?
Pederson Company acquires the net assets of Shelby Company by issuing 100,000 of its $1 par value shares of common stock. The shares have a fair value of $20 each. Just prior to the acquisition, Shelby’s balance sheet is attached:Fair values agree with book values except for the building, which is appraised at $450,000.The following additional information is available:^ The equipment will be sold for an estimated price of $200,000. A 10% commission will be paid to a broker.^ A major R&D project is underway. The accumulated costs are $56,000, and the estimated value of the work is $90,000.^ A warranty attaches to products sold in the past. The estimated future repair costs under the warranty are $40,000.^ Shelby has a customer list that has value. It is estimated that the list will provide additional income of $100,000 for three years. An intangible asset such as this is valued at a 20% rate of return.Record the acquisition of Shelby Company on the books of Pederson Company. Provide…
Lexus Corporation acquired 70 percent of Triumph Corporation's voting stock on January 1, 20X2, for $280,000. The fair value of the noncontrolling interest was $120,000 at the date of acquisition. Triumph reported common stock outstanding of $80,000 and retained earnings of $270,000. The differential is assigned to buildings with an expected life of 10 years at the dat of acquisition. On December 31, 20X4, Lexus had $10,000 of unrealized profits on its books from inventory sales to Triumph, and Triumph had $15,000 of unrealized profit on its books from inventory sales to Lexus. All inventory held at December 31, 20X4, was sold during 20X5. On December 31, 20X5, Lexus had $12,000 of unrealized profit on its books from inventory sales to Triumph, and Triumph had unrealized profit on its books of $28,000 from inventory sales to Lexus. In 20X5 Triumph reported net income of $160,000. The amount Lexus will report as Income from Triumph Company for year 20X5 would be: O $100,900. $99,600. O…