Question

On January 1, 2000 Bear Company acquired all of the common stock of Rabbit Company at...

On January 1, 2000 Bear Company acquired all of the common stock of Rabbit Company at book value Bear accounts for its investment in Rabbit using the initial value method and Rabbit does not pay dividends on its common stock.

The Balance sheets of Bear and Rabbit on December 31, 2020 is listed below:

Bear Rabbit
Common stock $1 par 1,000,000 20,000
preferred stock $10 par 4% 10,000
net income (unconsolidated) 90,000

45,000

a) Determine the consolidated earnings per share of Bear Company. Rabbit's preferred stock in non-convertible.

b) The preferred stock is convertible into 5 shares of common stock of Rabbit Company

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

Here is the solution..Thank you

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2000 Batman Company acquired all of the common stock of Robin Company at...
On January 1, 2000 Batman Company acquired all of the common stock of Robin Company at book value. Batman accounts for its investment in Robin using the initial value method and Robin does not pay dividends on its common stock. The Balance sheets of Batman and Robin on December 31, 2020 is listed below: Batman Robin common stock $1 par 1,000,000 20,000 preferred stock $10 par 4% 10,000 net income 90,000 45,000 a) Determine the consolidated earnings per share of...
Information about the Jack and Jill Companies are as follows:   Jack Company: common stock $1 par...
Information about the Jack and Jill Companies are as follows:   Jack Company: common stock $1 par $10,000 APIC $90,000 retained earnings $80,000 Jill Company : preferred stock $10 par 5% $200 20 shares common stock $1 par $500 APIC $50 retained earnings $50    Jack owns all of the outstanding common stock of Jill Company Part 1:  Jack reported unconsolidated income of $20,000; Jill reported unconsolidated income of $100 The preferred stock is non-cumulative non-convertible what is Jack's earnings per share? Part...
On January 1, 2000 Freddie Company purchased 100% of the voting stock of Bob Company at...
On January 1, 2000 Freddie Company purchased 100% of the voting stock of Bob Company at book value when the book value of Bob's assets equaled their fair market value Freddie accounts for its investment in Bob using the initial value (cost method) and Bob doesn't pay any dividends On October 1st 2018, Freddie Company sold inventory to BOB Company for $1,000,000. Freddie had purchased the merchandise for $700,000. Bob paid cash for the merchandise and it hadn't sold any...
On January 1, 2020, Moving Company had 1,000,000 shares of $ 1 par value common stock,...
On January 1, 2020, Moving Company had 1,000,000 shares of $ 1 par value common stock, and 100,000 shares of $ 100 par value, 6% preferred stock outstanding. (The preferred stock is NOT convertible into common stock) On July 1, 2020, Moving Company issued an additional 400,000 shares of common stock, receiving $ 20 per share. No additonal share transactions were made during the year, and thus on December 31, 2020,Moving Company had 1,400000 shares of Common Stock, and 100,0000...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017,...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Presents reported net income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in dividends each year. Santa reported net income of $40,000 in 2017 and $47,000 in 2018 and paid $10,000 in dividends each year. On the consolidated financial statements for 2017, a)what amount should have been shown for Equity in...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 45,000 shares of common stock for cash. Paul also had 8,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 470, 7%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 30 shares of common stock. The...
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company...
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 2 comma 000 shares of​ $100 par​ value, 5​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2018 and 2019. For the common stockholders to receive a dividend in​ 2020, the board of directors must declare dividends in excess​ of: A. $ 20 comma 000$20,000. B. $ 40 comma 000$40,000. C. $ 30 comma 000$30,000. D. $ 10...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $267,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $22,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $7,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...
Star & Anderson SAOG. acquired all of the common stock of Wilkinson SAOG. on January 1,...
Star & Anderson SAOG. acquired all of the common stock of Wilkinson SAOG. on January 1, 2018.  As of that date, Wilkinson had the following trial balance: Particulars Debit Credit Sundry Creditors 30,000 Land & Buildings (10 year  life) 70,000 Additional Paid-in –Capital 30,000 Sundry Debtors 25,000 Cash and bank balances 18,000 Short Term Investments 17,000 Equity share capital 150,000 Inventory 55,000 Plant and Equipment (4 year life) 120,000 Land 45,000 Long term borrowings ( Maturity 31/12/2020 90,000 Retained earnings (Opening Balance)...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative 6%, $100 par preferred stock, each convertible into 5 shares of common stock with  $1 par value per share. The company’s tax rate is 25%. During 2020, Monsieur Company declared and paid $5,000 in preferred dividends and no common stock dividends. Monsieur Company reported net income of $318,000 in 2020. Compute basic and diluted EPS for 2020.                Basic EPS     Diluted EPS   $3.83             $3.40    $3.91            $3.53...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT