Can you help with this? Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your final answersto 2 decimal places.)Earnings PerShareBasicDiluted 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).AustinRio Grande.$ (528,000)Consolidated$ (1,256,000)RevenuesCost of goods soldOperating expenses$ (728,000)428,000128,000(106,400)272,00098,000700,000251,000Equity in earnings of Rio GrandeIndividual company net income$ (278,400)$ (158,000)Consolidated net income$ (305,000)(26,600)Noncontrolling interest in consolidated net incomeConsolidated net income attributable to Austin$ (278,400)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.• Austin has 70,000 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 40,000 shares of common stock outstanding. The company also has 10,000 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 $36,000. These bonds can be exchanged for 25,000 shares of the subsidiary's common stock.

EPS termed as Earnings per share which is defined as the figure that states the profit per share…

Answered: Determine Austin's basic and diluted…

Determine Austin's basic and diluted EPS. (Round your intermediate percentage value to 1 decimal place. Round your fi to 2 decimal places.) Earnings Per Share Basic Diluted

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter16: Multistate Corporate Taxation

Section: Chapter Questions

Problem 34P

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