Question 5 - Homework: Consc X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps%252F... Update : Homework: Consolidations, Intercompany Procedures, ... i Saved Help Save & Exit Submit Check my work 5 Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Austin Rio Grande Consolidated Revenues $ ( 712 , 000) $ ( 512 , 000) $ (1, 224, 000) 4 Cost of goods sold 412, 000 288 , 000 700 , 000 points Operating expenses 112 , 000 82 , 000 219 , 000 Equity in earnings of Rio Grande 93, 600 ) Individual company net income $ (281, 600) $ (142 , 000) Consolidated net income $ (305, 000) eBook Noncontrolling interest in consolidated net income 23 , 400) Consolidated net income attributable to Austin $ (281, 600) Print Additional Information References Annual excess fair over book value amortization of $25,000 resulted from the acquisition. The parent applies the equity method to this investment. . Austin has 56,000 shares of common stock and 6,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $60,000, and each share can be exchanged for five shares of common stock. . Rio Grande has 44,000 shares of common stock outstanding. The company also has 9,000 stock warrants outstanding. For $10, each warrant can be converted into a share of Rio Grande's common stock. Austin holds half of these warrants. The price of Rio Grande's common stock was $20 per share throughout the year. . Rio Grande also has convertible bonds, none of which Austin owned. During the current year, total interest expense (net of taxes) was $28,000. These bonds can be exchanged for 19,000 shares of the subsidiary's common stock. Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places.) Earnings Per Share Basic $ 3.96 Diluted Mc Graw Hill