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Please help with diluted earnings per share. Posting a third time, previous ones incorrect Punch Manufacturing Corporation owns 80 percent of the common shares of
Please help with diluted earnings per share. Posting a third time, previous ones incorrect
Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retall Stores. The companies' balance sheets as of December 31,204, were as follows: Short Retall's 8 percent preferred stock is convertible Into 15,000 shares of common stock, and its 10 percent bonds are convertible Into 8,000 shares of common stock. Short reported net Income of $54,200 for 204 and pald dividends of $30,900. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, nelther of which is convertible. Punch reported after-tax Income, excluding investment income from Short, of $125,000 in 204 and paid dividends of $63,000. 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 Intermedlate calculations and final answers to two decimal places.)Step by Step Solution
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