Pop Corporation owns an 80 percent interest in Son Corporation. Throughout 2016, Pop had 20,000 shares of

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Pop Corporation owns an 80 percent interest in Son Corporation. Throughout 2016, Pop had 20,000 shares of common stock outstanding. Son had the following securities outstanding:
€¢ 10,000 shares of common stock
€¢
Options to purchase 2,000 shares of Son Corporation common at $15 per share
€¢ 1,000 shares of 10%, $100 par, convertible, preferred stock that are convertible into 3,000 shares of Son common stock Income data for the affiliates for 2016 are as follows:
Pop Corporation owns an 80 percent interest in Son Corporation.

REQUIRED:
Compute basic and diluted earnings per share for Pop Corporation and Subsidiary for 2016, assuming an average market price for Son Corporation common stock of $30 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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