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assignment due soon please need the solution ASAP. Stanley Co. owned 80% of the common stock of Constance Co. Constance had 50,000 shares of $5
assignment due soon please need the solution ASAP.
Stanley Co. owned 80% of the common stock of Constance Co. Constance had 50,000 shares of $5 par value common stock and 2,000 shares of preferred stock outstanding. Each preferred share received an annual per share dividend of $2 and is convertible into four shares of common stock. Stanley did not own any of Constance's preferred stock. Constance also had 600 bonds outstanding, each of which is convertible into ten shares of common stock. Constance's annual after-tax interest expense for the bonds was $2,000. Stanley did not own any of Constance's bonds. There are no excess amortizations or intra-entity transactions associated with this consolidation. Constance reported net income of $300,000 for 2021. Stanley has 100,000 shares of common stock outstanding and reported net income of $400,000 (this number doesn't include the investment income from Constance) for 2021.What would Stanley Co, report as consolidated diluted earnings per share (rounded)? O a. 4.71 O b. 6.37 OC 8.71 O d. 4.00 O e. 5.89 Step by Step Solution
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