7.

10.

Following are separate incorne statements for Austin, Inc, and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Additional Information - Annual excess fair over book value amortization of $25,000 resulted from the acquisition. - The parent applies the equity method to this investment. - Austin has 60,000 shares of common stock and 4,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $30,000, and each share can be exchanged for three shares of common stock. - Rlo Grande has 25,000 shares of common stock outstanding. The company also has 15,000 stock warrants outstanding. For $20. each warrant can be converted into a share of Rio Grande's common stock. Austin holds half of these warrants. The price of Rio Grande's common stock was $25 per share throughout the year. - Rio Grande also has convertible bonds, none of which Austin owned. During the current year, total interest expense (net of taxes) was $25,000. These bonds can be exchanged for 12,000 shares of the subsidiary's common stock. Dotermine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places.) On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: At the end of 2021, the following comparative ( 2020 and 2021) balance sheets and consolidated income statement were available: Additional Information for 2021 - On December 1, Stucco paid a $47,200 dividend. During the year, Plaster paid $172,000 in dividends. - During the year, Plaster issued $924,540 in long-term debt at par. - Plaster reported no asset purchases or dispositions other than the acquisition of Stucco. Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Statement of Cash Flows For the Year Ended December 31, 2021 Casb flows from operating activities