Electric Corporation holds 80 percent of Utility Company's voting common shares, acquired at book values, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Utility Company. Summary balance sheets for the companies on December 31, 2015, are as follows:

Neither of the preferred issues is convertible. Electric's preferred pays a 8 percent annual dividend, and Utility's preferred pays a 12 percent dividend. Utility reported net income of $30,000 and paid a total of $10,000 of dividends in 2015. Electric reported income from its separate operations of $70,000 and paid total dividends of $25,000 in 2015. Based on the preceding information, what is the amount of earnings available to common shareholders reported in the consolidated financial statements for the year?

Based on the preceding information, what is the consolidated earnings per share for 2015?

Would your answer to both questions above be different if the parent owned 100% and why?

Electric Corp. $75,000 40,000 160,000 80,000 Utility Company $60,000 30,000 110,000 Cash and Receivables Inventorv Buildings and Equipment (net) Investment in Utility Company Total Assets Accounts Pavable Preferred Stock Common Stock ($5 par value) Retained Earnings Total Liabilities and Owners' Equity $355.000 $200,000 $25,000 75,000 50,000 50,000 $355.000 $200,000 $50,000 50,000 100,000 155,000