The holding company is Austin Inc.

Income Statements $ Revenues Cost of goods sold Operating expenses Equity in eamings of Rio Grande Individual company net income Consolidated net income Austin Rio Grande Consolidated (700,000) $ (500,000) $ (1,200,000) 400,000 300,000 700,000 100,000 70,000 195,000 (84.000) (284,000 $ (130,000) (305,000) $ Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin (21,000) (284,000) $ Annual excess fair over book value amortization resulting from acquisition Austin common stock - number of shares Austin preferred stock - number of shares Annual dividend paid to preferred stockholders Number of shares of Common stock for which one share of Preferred can be traded Rio Grande common stock outstanding - number of shares Rio Grande stock warrants outstanding Cost to convert warrant to share of stock Number of warrants held by Austin Price of Rio Grande common stock throughout the year Interest expense for Rio Grande convertible bonds Number of shares of subsidiary's common stock that can be exchanged for each of Rio Grande's convertible bonds. 25,000 50,000 10,000 40,000 2 30,000 5,000 10 50% 20 22,000 10,000 AUSTIN, INC. AND RIO GRANDE CORPORATION Basic earnings per share - Austin, Inc. Consolidated net income to parent Austin's preferred dividends Earnings applicable to Austin's basic EPS Austin's outstanding common shares Basic earnings per share Diluted earnings per share - Austin, Inc. Rio Grande net income after amortization Interest saved assuming conversion of bonds (net of tax) Net income applicable to diluted earnings per share Shares outstanding Assumed conversion of warrants Assumed treasury stock acquisition using proceeds from warrant conversion Assumed conversion of bonds Subsidiary shares applicable to diluted earnings per share Shares controlled by parent Portion owned by parent Austin's Income and shares for diluted EPS calculation Subsidiary shares applicable to diluted EPS Shares controlled by parent Portion owned by parent Income applicable to parent - diluted EPS Austin's income and shares for diluted EPS calculation Austin's separate net income Net Income of Rio Grande to parent Preferred dividends Earnings applicable to diluted EPS Austin's outstanding common shares Assumed conversion of preferred stock Shares applicable to diluted earnings per share Diluted earnings per share