Computing consolidated earnings per share (EPS)Assume the following facts about a parent and its 75% owned subsidiary company.ParentNet income$180,000Common shares outstanding50,000Convertible preferred stock Dividends - $17,100Convertible bondsConvertible into 9,000 shares of common stocka. Compute basic earnings per share$ 3.93b. Compute diluted earnings per share$ 3.62xSubsidiary$45,00022,000 (16,500-75% owned by pareInterest expere after tax-$7,200Convertible into 4,500 shares of common stock

Here we need to calculate the EPS and diluted EPS for the parent company. EPS (Parent) = ((Net…

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 Dividends-$17,100 Convertible bonds $180,000 50,000 Convertible into 0,000 shares of common stock a. Compute basic earnings per share 3.93 x b. Compute diluted earnings per share $ 3.62 Subsidiary $45,000 22,000 (16.500- 75 owned by par Interest expere after lan-$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: Parent Net income Common shares outstanding Convertible preferred stock Dividends-$17,100 Convertible bonds $180,000 50,000 Convertible into 0,000 shares of common stock a. Compute basic earnings per share 3.93 x b. Compute diluted earnings per share $ 3.62 Subsidiary $45,000 22,000 (16.500- 75 owned by par Interest expere after lan-$7,200 Convertible into 4,500 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

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last two questions
Compute for Consolidated Total Equity *Consolidated Inventories *
How should preferred stock of a subsidiary be shown in a consolidated balance sheet in each case? a. If it is held 100 percent by the parent. b. If it is held 50 percent by the parent and 50 percent by outside interests c. If it is held 100 percent by outside interests.
Explain what effect does the dividend have on the retained earnings and non-controlling interest balances in the parent company’s consolidated balance sheet if a 70 percent owned subsidiary company declares and pays a cash dividend.
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Determine the percentage owned by the parent.
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: Determine the percentage owned by the parent
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
Compute for the non-controlling interest in Net Income
At Dec.31,2020 X company has following Balances #of Shares Share Capital of OS $500,000 at par value of $10per share 50,000 Share Capital of PS $100,000 at par value $100 per share 1000 Retained Earning$200,000 PS has a right in 5% interest not cumulative and not participating compute Book Value (BV) per share