Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income $210,000 Common shares outstanding 50,000 Convertible preferred stock Dividends $20,100 Convertible into 9,000 shares of common stock Convertible bonds a. Compute basic earnings per share $ b. Compute diluted earnings per share Subsidiary $49,000 28,000 (21,000= 75% owned by parent) Interest expense after tax = $7,100Convertible Into 6,000 shares of common stock

Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income $210,000 Common shares outstanding 50,000 Convertible preferred stock Dividends $20,100 Convertible into 9,000 shares of common stock Convertible bonds a. Compute basic earnings per share $ b. Compute diluted earnings per share Subsidiary $49,000 28,000 (21,000= 75% owned by parent) Interest expense after tax = $7,100Convertible Into 6,000 shares of common stock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Extracts from group financial statements of AB, a public limited company, year ended April 30, 2021. OMR (millions) Profit from continuing operations 35,000 Minority interest distributed1,500 Preference dividend30 Share capital at April 30, 2021 Ordinary shares of OMR 1 1,000 5% Convertible preference shares 300 Other Information 1. The profits for the three months to April 30, 2021, are OMR1,200 million. 2. On May 11, 2021, there was a bonus issue of one for four ordinary shares. The financial statements are made up to April 30, 2021, and had not yet been published. 3. XY plc, a 100% owned subsidiary of AB, has in issue 9% convertible bonds of OMR200 million that can be converted into one ordinary share of AB for every OMR10 worth of bonds. Income tax is levied at 33%. Required Calculate basic and diluted earnings per share.
The following share dividends were declared and distributed by Ivy Company: % of Ordinary Share Outstanding Market Value Par Value 10 315,000 210,000 25 840,000 630,000 How much should be debited to Retained Earnings at the time of declaration?
Compute for Consolidated Total Equity *Consolidated Inventories *
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company. Parent Net income $180,000 Common shares outstanding 50,000 Convertible preferred stock Dividends - $17,100 Convertible bonds Convertible into 9,000 shares of common stock a. Compute basic earnings per share $ 3.93 b. Compute diluted earnings per share $ 3.62 x Subsidiary $45,000 22,000 (16,500-75% owned by pare Interest expere after tax-$7,200 Convertible into 4,500 shares of common stock
Pagle Corporation holds 80 percent of Standard Company's common shares. The companies report the following balance sheet data for December 31, 20X1: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Standard Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Taxes Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Total Liabilities and Owners' Equity Pagle Corporation $ 53,000 85,000 126,000 700,000 (295,000) 160,000 $ 829,000 Basic earnings per share Diluted earnings per share $ 120,000 79,000 200,000 100,000 330,000 $ 829,000 Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Standard Company $ 43,000 65,000 76,000 330,000 (130,000) $ 384,000 $ 84,000 100,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard…
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Net income $220,000 Common shares outstanding 50,000 Convertible preferred stock Dividends = $21,300 Convertible into 9,000 shares of common stock Convertible bonds a. Compute basic earnings per share $ 4.4 X Parent b. Compute diluted earnings per share $ 4.9 X Subsidiary $50,000 30,000 (22,500 = 75% owned by parent) Interest expense after tax = $5,860Convertible into 8,000 shares of common stock
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income Common shares outstanding Convertible preferred stock Convertible bonds $180,000 50,000 Dividends = $17,100 Convertible into 9,000 shares of common stock a. Compute basic earnings per share $ b. Compute diluted earnings per share LA Subsidiary $45,000 22,000 (16,500 = 75% owned by parent) Interest expense after tax = $7,200 Convertible into 4,500 shares of common stock
Computing the noncontrolling interests equity balance Assume the following facts relating to an 90% owned subsidiary company: BOY stockholders’ equity $900,000 BOY AAP assets 117,000 Net income of subsidiary (not including [A] asset depreciation and amortization) 216,000 AAP assets depreciation and amortization expense 36,000 Dividends declared and paid by subsidiary 18,000 b. Compute the amount reported as noncontrolling equity at the end of the year. $Answer
REQUIRED: 1. What amount should be reported as unappropriated retained earnings at year-end?
1
Compute for the non-controlling interest in Net Income