P Company owns60%of S Company. The table below summarizes select information for the current year.

There are no intercompany transactions or adjustments required as a result of the acquisition.

Consolidated net income for the current year is $225,000.

Consolidated net income attributable to P for the current year is $185,000.

 

Compute Basic EPS as it would appear on the consolidated income statement for the current year.

What is the numerator in your computation?

What is the denominator in your computation?

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Net income on separate records.* *P net income does NOT include equity income of S Shares of common stock outstanding throughout the year Dividends paid on common stock Dividends paid on preferred stock (not convertible) $ 125,000* 15,000 sh. $ 17,000 $10,000 $100,000 57,000 sh. $12,000 none Net income on separate records.* *P net income does NOT include equity income of S Shares of common stock outstanding throughout the year Dividends paid on common stock Dividends paid on preferred stock (not convertible) $ 125,000* 15,000 sh. $ 17,000 $10,000 $100,000 57,000 sh. $12,000 none

Answer rating: 100% (QA)

To compute Basic Earnings Per Share EPS as it would appea... View the full answer