ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.14E
To determine
Consolidated earnings per share are calculated in the same way as earnings per share are calculated in a single corporation. Consolidated earnings per share is based on the income attributed to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and any preferred dividends requirement of the parent company from consolidated net income. The resulting amount is then divided by the weighted-average number of the parent’s common shares outstanding during the period. In computation of EPS, the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and
computation of consolidated EPS, ignoring any tax consequences.
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At the beginning of the current year, WELL Co. had 200,000 ordinary shares and 100,000, 4% par value cumulative preference shares outstanding . No dividends were declared on either the preference or ordinary shares in the prior and current year. At year end, the entity declared a 100% share dividend on ordinary shares . Net income for the current year was P7,500,000. What amount should be reported as basic earnings per share if the par value of preference shares is 100?
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CFAS Company showed the following information from its shareholders' equity at year-end before the effect
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per share of P300. (Input your answers as figures, do NOT put any comma, peso sign or extra spaces. E.g. if your
answer is one thousand, please input 1000):
1. How much is the adjusted ordinary share capital at year end?
2. How much is the adjusted share premium at year end?
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Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows:
Jan.
9
Split the common stock 3 for 1 and reduced the par from S75 to $25 per share. After the split, there
were 1,200,000 common shares outstanding.
Feb.
28
Purchased 40,000 shares of the corporation's own common stock at $28, recording the stock at cost.
May
Declared semiannual dividends of $0.80 per share on 75,000 shares of preferred stock and $.12 per
1
share on the common stock to stockholders of record on June 1, payable on July 10.
Jul.
Paid the cash dividends.
10
Sep.
7
Sold 30,000 shares of treasury stock at $34, receiving cash.
Ot.
1
Declared semiannual dividends of $0.80 per share on the preferred stock and $0.12 per share on the
common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on
the common stock outstanding. The fair market value of the common stock is estimated at $36.
Dec.
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Paid the cash dividends and issued the…
Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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