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Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. Answer is complete but not entirely correct. Earnings Per Share Basic Diluted $ Ssss $ 4.58 2.98

Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. Answer is complete but not entirely correct. Earnings Per Share Basic Diluted $ Ssss $ 4.58 2.98

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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Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Revenues Cost of goods sold Operating expenses Equity in earnings of Saltillo Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Amarillo Additional Information Accounts. > Answer is complete but not entirely correct. Earnings Per Share Basic Diluted Amarillo Saltillo $ (724,000) $ (524,000) 424,000 276,000 94,000 124,000 (103,200) $ (279,200) $ (154,000) • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. Amarillo has 50,000 shares of common stock and 9,000 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. $ $ Consolidated $ (1,248,000) • Saltillo has 35,000 shares of common stock outstanding. • Saltillo has convertible bonds outstanding, none of which Amarillo owned. During the current year, total interest expense (net of taxes) was $34,000. These bonds can be exchanged for 11,000 shares of the subsidiary's common stock. 700,000 243,000 Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. 4.58 2.98 x $ (305,000) (25,800) $ (279,200)
Transcribed Image Text:Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Revenues Cost of goods sold Operating expenses Equity in earnings of Saltillo Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Amarillo Additional Information Accounts. > Answer is complete but not entirely correct. Earnings Per Share Basic Diluted Amarillo Saltillo $ (724,000) $ (524,000) 424,000 276,000 94,000 124,000 (103,200) $ (279,200) $ (154,000) • Annual excess fair over book value amortization of $25,000 resulted from the acquisition. • The parent applies the equity method to this investment. Amarillo has 50,000 shares of common stock and 9,000 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. $ $ Consolidated $ (1,248,000) • Saltillo has 35,000 shares of common stock outstanding. • Saltillo has convertible bonds outstanding, none of which Amarillo owned. During the current year, total interest expense (net of taxes) was $34,000. These bonds can be exchanged for 11,000 shares of the subsidiary's common stock. 700,000 243,000 Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. 4.58 2.98 x $ (305,000) (25,800) $ (279,200)
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