Question: Amber Corporation holds 70 percent of Newtop Company s voting common

Amber Corporation holds 70 percent of Newtop Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows:

Neither of the preferred issues is convertible. Amber's preferred pays a 9 percent annual dividend and Newtop's preferred pays a 10 percent dividend. Newtop reported net income of $45,000 and paid a total of $20,000 of dividends in 20X1. Amber reported $59,000 of income from its separate operations and paid total dividends of $45,000 in 20X1.

Compute 20X1 consolidated EPS. Ignore any taxconsequences.

Sale on SolutionInn
  • CreatedMay 23, 2014
  • Files Included
Post your question