Computing consolidated earnings per share (EPS)Assume the following facts about a parent and its 75% owned subsidiary company:ParentNet incomeCommon shares outstandingConvertible preferred stockConvertible bonds$180,00050,000Dividends = $17,100Convertible into 9,000 shares of common stocka. Compute basic earnings per share$b. Compute diluted earnings per shareLASubsidiary$45,00022,000 (16,500 = 75% owned by parent)Interest expense after tax = $7,200Convertible into 4,500 shares of common stock

Given that, Net income of ; Parent = $180,000 Subsidiary = $45,000

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 b. Compute diluted earnings per share 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

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 b. Compute diluted earnings per share 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

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 30P

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Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Subsidiary Net income $180,000 Common shares outstanding 50,000 Convertible preferred stock Dividends $17,100 Convertible into 9,000 shares of common stock Convertible bonds a. Compute basic earnings per share $ 3.93 b. Compute diluted earnings per share $ 3.68 x $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 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 $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
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: 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 $ Parent 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
Please see attached.
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Subject: Financial Accounting and Reporting Topic: Equity Transactions