Question
Item10 Time Remaining 3 hours 48 minutes 10 seconds 03:48:10 Item 10 Item 10 Time Remaining 3 hours 48 minutes 10 seconds 03:48:10 Punch Manufacturing
Item10
Time Remaining 3 hours 48 minutes 10 seconds
03:48:10
Item 10
Item 10
Time Remaining 3 hours 48 minutes 10 seconds
03:48:10
Punch 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:
Punch Manufacturing Corporation | Short Retail Stores | |||||||||
Assets | ||||||||||
Cash | $ | 51,000 | $ | 31,000 | ||||||
Accounts Receivable | 107,000 | 87,000 | ||||||||
Inventory | 250,000 | 135,000 | ||||||||
Land | 115,000 | 85,000 | ||||||||
Buildings and Equipment | 500,000 | 330,000 | ||||||||
Less: Accumulated Depreciation | (240,000 | ) | (135,000 | ) | ||||||
Investment in Short Retail Stores | 140,000 | |||||||||
Total Assets | $ | 923,000 | $ | 533,000 | ||||||
Liabilities and Equity | ||||||||||
Accounts Payable | $ | 93,000 | $ | 58,000 | ||||||
Bonds Payable | 270,000 | 200,000 | ||||||||
Preferred Stock ($10 par value) | 200,000 | 100,000 | ||||||||
Common Stock: | ||||||||||
$10 par value | 150,000 | |||||||||
$5 par value | 100,000 | |||||||||
Retained Earnings | 210,000 | 75,000 | ||||||||
Total Liabilities and Equity | $ | 923,000 | $ | 533,000 | ||||||
Short Retails 8 percent preferred stock is convertible into 14,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $51,400 for 20X4 and paid dividends of $30,400. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Punch reported after-tax income, excluding investment income from Short, of $115,000 in 20X4 and paid dividends of $69,000. 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.)
Basic earnings per share:
Diluted earnings per share:
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