Question
Please help solve this problem, thanks very much. ON JANUARY 1, 2002 JAMES-BOND COMPANY PURHCASED ALL 1000 OF THE OUTSTANDING SHARES OF SPECTRE COMPANY AT
Please help solve this problem, thanks very much.
ON JANUARY 1, 2002 JAMES-BOND COMPANY PURHCASED ALL 1000 OF THE OUTSTANDING SHARES OF SPECTRE COMPANY AT BOOK VALUE. INFORMATION FOR 2015 IS AS FOLLOWS:
JAMES-BOND NET INCOME $500,000 (UNCONSOLIDATED) COMMON SHARES ISSUED AND OUTSTANDING 200,000 NO PREFERRED STOCK OUTSTANDING
SPECTRE NET INCOME $40,000 COMMON SHARES ISSUED AND OUTSTANDING 1000 (ALL OWNED BY JAMES-BOND) PREFERRED STOCK $100 PAR 6% 100 SHARES ISSUED AND OUTSTANDING EACH CONVERTIBLE INTO 5 SHARES OF SPECTRE COMMON STOCK
REQUIRED: DETERMINE THE EPS OF JAMES-BOND COMPANY IF THE SPECTRE PREFERRED STOCK IS:
- ANTI-DILUTIVE
- DILUTIVE
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