Final answer:
Under GAAP, the reported earnings per share of $3.10 must be based on evidence and fairly presented. Significant deviations from this number, such as $3.40, $4.00, or $2.15, would require clear justification to be in accordance with GAAP standards.
Step-by-step explanation:
The accuracy of the reported earnings per share (EPS) of Elmwood Industries, which was reported as $3.10 per share in 2013, is governed by the Generally Accepted Accounting Principles (GAAP). GAAP allows for certain estimation and judgment in the presentation of financial statements; however, it requires that the figures be presented fairly and based on evidence. Significant deviations without reasonable justification would not be in accordance with GAAP. The potential options provided, namely $3.40, $4.00, or $2.15, might not necessarily align with GAAP without clear and documented reasons for such differences.
It's important to note that corporate profits, as reported by entities like the S&P 500 according to the Wall Street Journal, typically involve detailed financial analysis and adherence to stringent reporting standards. For Elmwood Industries to maintain credibility and compliance with GAAP, their reported EPS figures should closely reflect their true earnings, considering any acceptable accounting practices, including inventory and capital consumption adjustments.