Program Corporation Owns 70% of Solution Company A)$125
B)$1

question 45

Multiple Choice

Program Corporation owns 70% of Solution Company.Selected financial data for each for the current year follows: Consolidated basic earnings per share (BEPS) is (round to the nearest cent) :
$\begin{array}{lr}\text { Program Corporation: } & \\\text { Internally generated net income } & \$ 125,000 \\\text { Common shares outstanding } & 100,000\\\text { Solution Company: }\\\text { Net income (adjusted for intercompany profits) } & \$ 50,000 \\\text { Common shares outstanding } & 10,000\end{array}$

• A)$1.25
• B)$1.64
• C)$1.60
• D)$1.59

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Definitions:

Total Manufacturing Costs

The sum of all costs directly associated with the production of goods, including raw materials, direct labor, and manufacturing overhead.

Incurred

Refers to costs or expenses that have been realized or experienced by a business or individual.

Total Manufacturing Costs

The aggregate of all costs involved in the production of finished goods, including direct materials, direct labor, and factory overhead.

Raw Materials

The basic materials from which products are made, typically unprocessed or minimally processed before use in manufacturing.