Please do not give solution in image format ?. Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as aconsolidated statement for the business combination as a whole (credit balances indicated by parentheses).RevenuesCost of goods soldOperating expensesEquity in earnings of Rio GrandeIndividual company net incomeConsolidated net income.Noncontrolling interest in consolidated net incomeConsolidated net income attributable to AustinBasicDilutedEarnings PerShare$$ü2.601.78Additional Information• 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 60,000 shares of common stock and 8,000 shares of preferred stock outstanding. Owners of the preferred stock arepaid an annual dividend of $50,000, and each share can be exchanged for five shares of common stock.• Rio Grande has 39,000 shares of common stock outstanding. The company also has 12,000 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 RioGrande'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 $26,000. These bonds can be exchanged for 12,000 shares of the subsidiary's common stock.Show Transcribed TextAustin$ (708,000)408,000108,000(90,400)$ (282,400)Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answersto 2 decimal places.)Both are wrong pls helpRio Grande$ (508,000)292,00078,000$ (138,000)Consolidated$ (1,216,000)700,000211,000(305,000)(22,600)$ (282,400)$

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

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). Revenues Cost of goods sold Operating expenses Equity in earnings of Rio Grande Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin Austin $ (708,000) 408,000 108,000 (90,400) $ (282,400) Rio Grande $ (508,000) 292,000 78,000 $ (138,000) Consolidated $ (1,216,000) 700,000 211,000 $ (305,000) (22,600) (282,400) $

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). Revenues Cost of goods sold Operating expenses Equity in earnings of Rio Grande Individual company net income Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income attributable to Austin Austin $ (708,000) 408,000 108,000 (90,400) $ (282,400) Rio Grande $ (508,000) 292,000 78,000 $ (138,000) Consolidated $ (1,216,000) 700,000 211,000 $ (305,000) (22,600) (282,400) $

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 20E

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