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Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poppy Corporation $ 94,000 83,000 117,000 690,000 Basic earnings per share Diluted earnings per share (225,000) 135,000 $ 894,000 $ 119,000 250,000 300,000 225,000 $ 894,000 Required: Compute basic and diluted EPS for the consolidated entity for 20x2. Note: Round your answers to 2 decimal places. Seed Company $ 35,000 57,000 100,000 92,000 (77,000) $ 487,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible. Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax ate of 40 percent is applicable to both companies. Seed reports net income of $35,000 for 20X2 and pays dividends of $16,000. Poppy reports income from its separate operations of $51,000 and pays dividends of $27,000. $ 62,000 200,000 100,000 125,000 $ 487,000

Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poppy Corporation $ 94,000 83,000 117,000 690,000 Basic earnings per share Diluted earnings per share (225,000) 135,000 $ 894,000 $ 119,000 250,000 300,000 225,000 $ 894,000 Required: Compute basic and diluted EPS for the consolidated entity for 20x2. Note: Round your answers to 2 decimal places. Seed Company $ 35,000 57,000 100,000 92,000 (77,000) $ 487,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible. Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax ate of 40 percent is applicable to both companies. Seed reports net income of $35,000 for 20X2 and pays dividends of $16,000. Poppy reports income from its separate operations of $51,000 and pays dividends of $27,000. $ 62,000 200,000 100,000 125,000 $ 487,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poppy Corporation $ 94,000 83,000 Basic earnings per share Diluted earnings per share $ 35,000 57,000 117,000 100,000 690,000 92,000 (225,000) (77,000) 135,000 $ 894,000 $ 487,000 Seed Company $ 62,000 $ 119,000 250,000 200,000 300,000 100,000 225,000 125,000 $ 894,000 $ 487,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible. Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $35,000 for 20X2 and pays dividends of $16,000. Poppy reports income from its separate operations of $51,000 and pays dividends of $27,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X2. Note: Round your answers to 2 decimal places.
Transcribed Image Text:Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poppy Corporation $ 94,000 83,000 Basic earnings per share Diluted earnings per share $ 35,000 57,000 117,000 100,000 690,000 92,000 (225,000) (77,000) 135,000 $ 894,000 $ 487,000 Seed Company $ 62,000 $ 119,000 250,000 200,000 300,000 100,000 225,000 125,000 $ 894,000 $ 487,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible. Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $35,000 for 20X2 and pays dividends of $16,000. Poppy reports income from its separate operations of $51,000 and pays dividends of $27,000. Required: Compute basic and diluted EPS for the consolidated entity for 20X2. Note: Round your answers to 2 decimal places.
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