Question
Assumetheparentowns90%ofthesubsidiaryandhasanadjustedinternallygeneratednetincomeof$100,000and5,000sharesofcommonstockoutstanding.Alsoassumetheparenthasdilutivebondsoutstandingthatareconvertibleinto2,000sharesofcommonstockandtheinterestpaidonthesebondswas$4,000.Whatistheconsolidateddilutedearningspershare(DEPS)ifthesubsidiarydatainclude:3,000sharesofcommonstock,150sharesofconvertiblebondsthatareheldbyparent,5sharesofcommonstockthatarefromconvertiblebondsoutstandingbysubsidiaryandsubsidiarydilutedearningspershareof$6.88. ANSWERS: 18.25 14.86 25.48 20.80
Assumetheparentowns90%ofthesubsidiaryandhasanadjustedinternallygeneratednetincomeof$100,000and5,000sharesofcommonstockoutstanding.Alsoassumetheparenthasdilutivebondsoutstandingthatareconvertibleinto2,000sharesofcommonstockandtheinterestpaidonthesebondswas$4,000.Whatistheconsolidateddilutedearningspershare(DEPS)ifthesubsidiarydatainclude:3,000sharesofcommonstock,150sharesofconvertiblebondsthatareheldbyparent,5sharesofcommonstockthatarefromconvertiblebondsoutstandingbysubsidiaryandsubsidiarydilutedearningspershareof$6.88.
-
ANSWERS:
18.25
14.86
25.48
20.80
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Debra JeterJames Reeve, Jonathan Duchac, Horace Brock, Paul Chaney
4th Edition
