Vala Following are separate income statements for Amarillo, Incorporated, and its 80 percent-owned subsidiary, Saltillo Corporation as wellas a consolidated statement for the business combination as a whole (credit balances indicated by parentheses).RevenuesCost of goods soldOperating expensesEquity in earnings of SaltilloIndividual company net incomeConsolidated net incomeNoncontrolling interest in consolidated net incomeConsolidated net income attributable to AmarilloAdditional InformationAccounts.> Answer is complete but not entirely correct.EarningsPer ShareBasicDilutedAmarilloSaltillo$ (724,000) $ (524,000)424,000276,00094,000124,000(103,200)$ (279,200) $ (154,000)• 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 arepaid an annual dividend of $50,000, and each share can be exchanged for five shares of common stock.$$Consolidated$ (1,248,000)• 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 oftaxes) was $34,000. These bonds can be exchanged for 11,000 shares of the subsidiary's common stock.700,000243,000Required:Determine Amarillo's basic and diluted EPS.Note: Round your intermediate percentage value to 1 decimal place. Round your final answers to 2 decimal places.4.582.98 x$ (305,000)(25,800)$ (279,200)

Earnings per share, or EPS, is a crucial financial metric that shows a company's profitability. The…

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. Answer is complete but not entirely correct. Earnings Per Share Basic Diluted $ Ssss $ 4.58 2.98

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. Answer is complete but not entirely correct. Earnings Per Share Basic Diluted $ Ssss $ 4.58 2.98

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 1BD

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