ON 1/1/2000  JACK COMPANY PURCHASED 90% OF JILL COMPANY FOR BOOK VALUE                    INFORMATION ABOUT JACK AND JILL ARE PRESENTED BELOW FOR...

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 ON 1/1/2000  JACK COMPANY PURCHASED 90% OF JILL COMPANY FOR BOOK VALUE      
             
 INFORMATION ABOUT JACK AND JILL ARE PRESENTED BELOW FOR 2013:       
             
    2013        
    JACK JILL      
 SALES  4,000,000 400,000      
 COGS  600,000 60000      
 INVESTMENT INCOME 306000  90% of Jill's income     
             
 NET INCOME 3,706,000 340,000      
             
             
COMMON SHARES OUTSTAND 800000 100000      
cumulative preferred 10,000 shares $1par 100%  10000      
             
 OTHER INFORMATION:           
 THE CUMULATIVE PREFERRED STOCK OF JILL CAN BE CONVERTED INTO 20,000 SHARES OF JILL'S COMMON STOCK  
 In 2013, Jill declared and paid a $10,000 dividend to preferred stock  holders     
             
 Jill owns 10,000 shares of Jack common stock  Jack paid no dividends     
             
 REQUIRED:   DETERMINE THE CONSOLIDATED EARNINGS PER SHARE OF JACK COMPANY.      
 a)  if the convertible preferred stock is anti-dilutive       
 b) is the convertible preferred stock is dilutive.         
             
    • 11 years ago
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