Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity reported...

 

Transcribed Image Text:

Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity reported consolidated net income of $614,450. Of this amount $571,200 was attributable to Mattoon's controlling interest while the remaining $43,250 was attributable to the noncontrolling interest. Mattoon has 136,000 shares of common stock outstanding and Effingham has 28,000 shares outstanding. Neither company has issued preferred shares or has any convertible securities outstanding. On the face of the consolidated income statement, how much should be reported as Mattoon's earnings per share? Multiple Choice $3.75. $4.20. $3.64. $4.52. Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity reported consolidated net income of $614,450. Of this amount $571,200 was attributable to Mattoon's controlling interest while the remaining $43,250 was attributable to the noncontrolling interest. Mattoon has 136,000 shares of common stock outstanding and Effingham has 28,000 shares outstanding. Neither company has issued preferred shares or has any convertible securities outstanding. On the face of the consolidated income statement, how much should be reported as Mattoon's earnings per share? Multiple Choice $3.75. $4.20. $3.64. $4.52.

Answer rating: 100% (QA)

consolidation The process of combining financial statements of h... View the full answer