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Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balan sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Poison Corporation $ 10,000 37,000 120,000 285,000 (137,000) 125,300 $ 440,300 $ 67,300 43,000 100,000 120,000 Snake Company $ 22,000 47,000 70,000 215,000 (67,000) $ 287,000 $ 54,000 54,000 100,000

Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balan sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Poison Corporation $ 10,000 37,000 120,000 285,000 (137,000) 125,300 $ 440,300 $ 67,300 43,000 100,000 120,000 Snake Company $ 22,000 47,000 70,000 215,000 (67,000) $ 287,000 $ 54,000 54,000 100,000

FINANCIAL ACCOUNTING
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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Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings. Total Liabilities and Owners' Equity Poison Corporation $ 10,000 37,000 120,000 285,000 (137,000) 125,300 $ 440,300 $ 67,300 43,000 100,000 120,000 110,000 $ 440,300 Snake Company $ 22,000 47,000 70,000 Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. 215,000 (67,000) $ 287,000 $ 54,000 54,000 100,000 79,000 $ 287,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake reported net income of $54,000 and paid a total of $23,000 of dividends in 20X1. Poison reported $64,000 of income from its separate operations and paid total dividends of $47,000 in 20X1.
Transcribed Image Text:Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings. Total Liabilities and Owners' Equity Poison Corporation $ 10,000 37,000 120,000 285,000 (137,000) 125,300 $ 440,300 $ 67,300 43,000 100,000 120,000 110,000 $ 440,300 Snake Company $ 22,000 47,000 70,000 Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. 215,000 (67,000) $ 287,000 $ 54,000 54,000 100,000 79,000 $ 287,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake reported net income of $54,000 and paid a total of $23,000 of dividends in 20X1. Poison reported $64,000 of income from its separate operations and paid total dividends of $47,000 in 20X1.
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