On January 1, 2000 Ram Company purchased all of the outstanding stock (all 9000 shares) of Saint Company
at book value. Ram accounts for its purchase of Saint using initial value and Saint does not pay any dividends
on its common stock.
On January 1, 2019 Saint Company issued 1000 shares of $100 par 5% preferred stock.
During 2019 Ram Company had 20,000 shares of common stock outstanding
In 2019, Ram Company reported income of $400,000 (unconsolidated)
In 2019, Saint Company reported income of $70,000
REQUIRED: A) DETERMINE EPS FOR 2019 FOR RAM COMPANY
B) THE PREFERRED STOCK IS CONVERTIBLE; EACH SHARE OF PREFERRED STOCK COULD BE
CONVERTED INTO 1 SHARE OF COMMON STOCK.DETERMINE EPS FOR RAM FOR 2019