Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred...
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Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poison Corporation $ 14,000 40,000 110,000 280,000 (130,000) 126,000. $ 440,000 $ 70,000 40,000 100,000 120,000 110,000 $ 440,000 Snake Company Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. Consolidated earnings per share $ 30,000 50,000 80,000 200,000 (60,000) $ 300,000 $ 70,000 50,000 100,000 80,000 $ 300,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake reported net income of $45,000 and paid a total of $20,000 of dividends in 20X1. Poison reported $59,000 of income from its separate operations and paid total dividends of $45,000 in 20X1. Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poison Corporation $ 14,000 40,000 110,000 280,000 (130,000) 126,000. $ 440,000 $ 70,000 40,000 100,000 120,000 110,000 $ 440,000 Snake Company Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. Consolidated earnings per share $ 30,000 50,000 80,000 200,000 (60,000) $ 300,000 $ 70,000 50,000 100,000 80,000 $ 300,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake reported net income of $45,000 and paid a total of $20,000 of dividends in 20X1. Poison reported $59,000 of income from its separate operations and paid total dividends of $45,000 in 20X1.
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Related Book For
Advanced Financial Accounting
ISBN: 9781260772135
13th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
Posted Date:
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