Richardson Co. has 30,000 of common shares outstanding and owned


Question Description:

30

Richardson Co. has 30,000 of common shares outstanding and owned 80% if the common stock of Plano Co. Plano had 20,000 shares of $5 par value common stock and no share of preferred stock outstanding. Plano also had convertible bonds outstanding, which are convertible into 4,000 shares of common stock. Plano’s annual after-tax interest expense for the bonds was $4,000. Richardson did not own any of Plano’s bonds. Plano reported net income of $40,000 for the year and Richardson reported net income of $105,000 (excludes any income recorded from the investment in Plano). Richardson’s consolidated diluted earnings per share (rounded) is calculated to be samsonford91
posted a question ยท Oct 31, 2015 at 11:01am

Answer

30