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Exercise 10-15 (Algo) Effect of Convertible Bonds on Earnings per Share LO 10-4 Poppy Corporation owns 60 percent of Seed Company's common shares. Baiance cheet
Exercise 10-15 (Algo) Effect of Convertible Bonds on Earnings per Share LO 10-4 Poppy Corporation owns 60 percent of Seed Company's common shares. Baiance cheet data for the companies on December 31 , 20x2, as follows: not convertible. Seed's bonds can be Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are rate of 40 percent is applicable to both companies. Seed reports net income of $35 stock any time after January 1, 20xi. An income tax Poppy reports income from its separate operations of $45,000 and pays dividends of $35,000 for 202 and pays dividends of $16,000. Required; Compute basic and diluted EPS for the consolidated entity for 202. lote: Round your answers to 2 decimal places
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