
Consolidated earnings per share:is calculated in the same way as earnings per share is calculated in a single corporation. Consolidated earnings per share is based on the income attributed to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and any preferred dividends requirement of the parent company from consolidated net income. The resulting amount is then divided by the weighted-average number of the parent’s common shares outstanding during the period. In computation of EPS, the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are treated as if they had been exercised, in addition income available to subsidiary common shareholders also changes.
computation of basic anddiluted EPS, for the consolidated entity for 20X7.

Want to see the full answer?
Check out a sample textbook solution
Chapter 10 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
- Kindly help me with this financial accounting questions not use chart gpt please fast given solutionarrow_forwardAccurate answerarrow_forwardPremier Utilities Group Company's revenue for April is $92,000, but only $22,000 cash is collected. Expenses for April are $53,000, of which $37,000 is paid in cash. During April, additional capital stock is issued in exchange for $8,000 cash. Using the accrual basis of accounting, what would Premier Utilities Group Company's income statement for April report?arrow_forward
- Can you explain the correct approach to solve this financial accounting question?arrow_forwardProvide Accurate Answerarrow_forwardA company's manufacturing overhead includes $7.10 per machine hour for variable manufacturing overhead and $207,000 per period for fixed manufacturing overhead.arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningAccounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub




