Homework Help is Here – Start Your Trial Now!
Business
Accounting
Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your fi to 2 decimal places.) Earnings Per Share Basic Diluted

Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your fi to 2 decimal places.) Earnings Per Share Basic Diluted

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

 

Can you help with this?

Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places.) Earnings Per Share Basic Diluted
Transcribed Image Text:Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places.) Earnings Per Share Basic Diluted
Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Austin Rio Grande. $ (528,000) Consolidated $ (1,256,000) Revenues Cost of goods sold Operating expenses $ (728,000) 428,000 128,000 (106,400) 272,000 98,000 700,000 251,000 Equity in earnings of Rio Grande Individual company net income $ (278,400) $ (158,000) Consolidated net income $ (305,000) (26,600) Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin $ (278,400) Additional Information • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. • Austin has 70,000 shares of common stock and 8,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $50,000, and each share can be exchanged for five shares of common stock. • Rio Grande has 40,000 shares of common stock outstanding. The company also has 10,000 stock warrants outstanding. For $10, each warrant can be converted into a share of Rio Grande's common stock. Austin holds half of these warrants. The price of Rio Grande's common stock was $20 per share throughout the year. • Rio Grande also has convertible bonds, none of which Austin owned. During the current year, total interest expense (net of taxes) was $36,000. These bonds can be exchanged for 25,000 shares of the subsidiary's common stock.
Transcribed Image Text:Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Austin Rio Grande. $ (528,000) Consolidated $ (1,256,000) Revenues Cost of goods sold Operating expenses $ (728,000) 428,000 128,000 (106,400) 272,000 98,000 700,000 251,000 Equity in earnings of Rio Grande Individual company net income $ (278,400) $ (158,000) Consolidated net income $ (305,000) (26,600) Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin $ (278,400) Additional Information • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. • Austin has 70,000 shares of common stock and 8,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $50,000, and each share can be exchanged for five shares of common stock. • Rio Grande has 40,000 shares of common stock outstanding. The company also has 10,000 stock warrants outstanding. For $10, each warrant can be converted into a share of Rio Grande's common stock. Austin holds half of these warrants. The price of Rio Grande's common stock was $20 per share throughout the year. • Rio Grande also has convertible bonds, none of which Austin owned. During the current year, total interest expense (net of taxes) was $36,000. These bonds can be exchanged for 25,000 shares of the subsidiary's common stock.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Planning
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