Branch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies' balance sheets as of December 31, 20x4, were as follows Branch Manufacturing Short Corporation Retail Stores Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Short Retail Stores Stock 57,000 37,000 103,000 260,000 105,000 510,000 235,000 (145,000) 136,000 83,000 125,000 75,000 320,000 Total Assets $ 936,000 495,000 Liabilities & Equity Accounts Payable Bonds Payable Preferred Stock ($10 par value) Common Stock: $ 76,000 45,000 200,000 80,000 300,000 $10 par value $5 par value Retained Earnings 200,000 150,000 210,000 100,000 70,000 Total Liabilities& Equity $ 936,000 495,000 Short Retail's 8 percent preferred stock is convertible into 13,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $49,800 for 20X4 and paid dividends of $30,800 Branch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Branch reported after-tax income, excluding investment income from Short, of $120,000 in 20X4 and paid dividends of $65,000. The companies file separate tax returns and are subject to a 40 percent income tax. Required Compute basic and diluted EPS for the consolidated entity. (Round your intermediate calculations and final answers to two decimal places.) Branch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies' balance sheets as of December 31, 20x4, were as follows Branch Manufacturing Short Corporation Retail Stores Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Short Retail Stores Stock 57,000 37,000 103,000 260,000 105,000 510,000 235,000 (145,000) 136,000 83,000 125,000 75,000 320,000 Total Assets $ 936,000 495,000 Liabilities & Equity Accounts Payable Bonds Payable Preferred Stock ($10 par value) Common Stock: $ 76,000 45,000 200,000 80,000 300,000 $10 par value $5 par value Retained Earnings 200,000 150,000 210,000 100,000 70,000 Total Liabilities& Equity $ 936,000 495,000 Short Retail's 8 percent preferred stock is convertible into 13,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $49,800 for 20X4 and paid dividends of $30,800 Branch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Branch reported after-tax income, excluding investment income from Short, of $120,000 in 20X4 and paid dividends of $65,000. The companies file separate tax returns and are subject to a 40 percent income tax. Required Compute basic and diluted EPS for the consolidated entity. (Round your intermediate calculations and final answers to two decimal places.)
