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This is the work that I did. Diluted EPS is wrong, so I need help with that part. Following are separate income statements for Amarillo,
This is the work that I did. Diluted EPS is wrong, so I need help with that part.
Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as well as a consolidated statement for the business combination as a whole (credit balances indicated by parentheses). Additional Information - Annual excess fair over book value amortization of $25,000 resulted from the acquisition. - The parent applies the equity method to this investment. - Amarillo has 50,000 shares of common stock and 9,000 shares of preferred stock outstanding. Owners of the preferred stock are paid an annual dividend of $50,000, and each share can be exchanged for five shares of common stock. - Saltillo has 35,000 shares of common stock outstanding. - Saltillo has convertible bonds outstanding, none of which Amarillo owned. During the current year, total interest expense (net of taxes) was $34,000. These bonds can be exchanged for 11,000 shares of the subsidiary's common stock. Required: Determine Amarillo's basic and diluted EPS. Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places. \begin{tabular}{|c|c|c|c|} \hline & Earnings Per Sharing & & \\ \hline Basic & 4.58 & & \\ \hline Diluted & 3.83 & & \\ \hline \multicolumn{4}{|c|}{ Basic EPS } \\ \hline \multicolumn{2}{|c|}{ consolidated NI attributable to Amarillo } & & 279200 \\ \hline \multicolumn{2}{|c|}{ Preferred annual dividend } & & 50000 \\ \hline \multicolumn{2}{|c|}{ number of shares outstanding } & & 50000 \\ \hline \multicolumn{4}{|c|}{ Diluted EPS } \\ \hline \multicolumn{2}{|c|}{ total number of share outstanding } & 46000 & \\ \hline \multicolumn{2}{|c|}{ shares owned by parent company } & 28000 & \\ \hline \multicolumn{2}{|c|}{ percentage of share owned by parent } & 60.869565 & \\ \hline \multirow{2}{*}{\multicolumn{4}{|c|}{ total NI}} \\ \hline & & & \\ \hline \multicolumn{2}{|c|}{ net income of parent } & 176000 & \\ \hline \multicolumn{2}{|c|}{ net income of sub } & 99430 & \\ \hline total NI & & 275430 & \\ \hline \multicolumn{2}{|c|}{ number of o/s shares } & 72000 & \\ \hline \end{tabular}
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