Homework Help is Here – Start Your Trial Now!
Business
Accounting
as a whole (credit balances indicated by parentheses Consolidated Amarillo $ (716,000) 416,000 116,000 $ (1,232,000) (96,800) $ (280,800) $ (146,000) Saltillo $ (516,000) 284,000 86,000 700,000 227,000 $ (305,000) (24, 200) $ (280,800)

as a whole (credit balances indicated by parentheses Consolidated Amarillo $ (716,000) 416,000 116,000 $ (1,232,000) (96,800) $ (280,800) $ (146,000) Saltillo $ (516,000) 284,000 86,000 700,000 227,000 $ (305,000) (24, 200) $ (280,800)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Hardev 

Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Revenues Cost of goods sold Operating expenses Equity in earnings of Saltillo Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Amarillo Additional Information Accounts Answer is complete but not entirely correct. Earnings Per Share Basic Diluted Amarillo Saltillo Consolidated $ (716,000) $ (516,000) $ (1,232,000) 416,000 284,000 86,000 • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. • Amarillo has 55,000 shares of common stock and 5,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $40,000, and each share can be exchanged for four shares of common stock. $ $ 116,000 (96,800) $ (280,800) $ (146,000) • Saltillo has 45,000 shares of common stock outstanding. • Saltillo has convertible bonds outstanding, none of which Amarillo owned. During the current year, total interest expense (net of taxes) was $30,000. These bonds can be exchanged for 13,000 shares of the subsidiary's common stock. 700,000 227,000 Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. 4.38✔ 3.45 X $ (305,000) (24,200) $ (280,800)
Transcribed Image Text:Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Revenues Cost of goods sold Operating expenses Equity in earnings of Saltillo Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Amarillo Additional Information Accounts Answer is complete but not entirely correct. Earnings Per Share Basic Diluted Amarillo Saltillo Consolidated $ (716,000) $ (516,000) $ (1,232,000) 416,000 284,000 86,000 • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. • Amarillo has 55,000 shares of common stock and 5,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $40,000, and each share can be exchanged for four shares of common stock. $ $ 116,000 (96,800) $ (280,800) $ (146,000) • Saltillo has 45,000 shares of common stock outstanding. • Saltillo has convertible bonds outstanding, none of which Amarillo owned. During the current year, total interest expense (net of taxes) was $30,000. These bonds can be exchanged for 13,000 shares of the subsidiary's common stock. 700,000 227,000 Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. 4.38✔ 3.45 X $ (305,000) (24,200) $ (280,800)
Expert Solution
steps

Step by step

Solved in 4 steps with 11 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS