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 Standard Company $ 57,000 85,000 129,000 720,000 (285,000) 128,000 $ 834,000 $ 203,000 71,000 200,000 100,000 260,000 $ 47,000 65,000 79,000 290,000 (145,000) $ 336,000 $ 76,000 100,000 50,000 110,000 $ 834,000 $ 336,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard preferred stock. Pagle's preferred shares are not convertible. Standard's preferred shares can be converted into 15,000 shares of common stock at any time. For 20X1, Standard reports $54,000 of net income and pays total dividends of $25,000, and Pagle reports $61,000 of income from its separate operations and pays total dividends of $38,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Basic earnings per share Diluted earnings per share
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 Standard Company $ 57,000 85,000 129,000 720,000 (285,000) 128,000 $ 834,000 $ 203,000 71,000 200,000 100,000 260,000 $ 47,000 65,000 79,000 290,000 (145,000) $ 336,000 $ 76,000 100,000 50,000 110,000 $ 834,000 $ 336,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard preferred stock. Pagle's preferred shares are not convertible. Standard's preferred shares can be converted into 15,000 shares of common stock at any time. For 20X1, Standard reports $54,000 of net income and pays total dividends of $25,000, and Pagle reports $61,000 of income from its separate operations and pays total dividends of $38,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Basic earnings per share Diluted earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Standard
Company
$ 57,000
85,000
129,000
720,000
(285,000)
128,000
$ 834,000
$ 203,000
71,000
200,000
100,000
260,000
$ 47,000
65,000
79,000
290,000
(145,000)
$ 336,000
$ 76,000
100,000
50,000
110,000
$ 834,000
$ 336,000
An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard preferred stock.
Pagle's preferred shares are not convertible. Standard's preferred shares can be converted into 15,000 shares of common stock at any
time. For 20X1, Standard reports $54,000 of net income and pays total dividends of $25,000, and Pagle reports $61,000 of income
from its separate operations and pays total dividends of $38,000.
Required:
Compute basic and diluted EPS for the consolidated entity for 20X1.
Note: Round your answers to 2 decimal places.
Basic earnings per share
Diluted earnings per share
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