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  3. punch manufacturing has 11 percent preferred stock

Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which...

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Accounting

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Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, neither of which is convertible. Punch reported after-tax income, excluding investment income from Short, of \$105,000 in 20X4 and paid dividends of $65,000. The companies file separate tax returns and are subject to a 40 percent income tax. Required: Compute basic and diluted EPS for the consolidated entity. (Round your intermediate calculations and final answers to two decimal places.) Short Retail's 8 percent preferred stock is convertible into 16,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $54,000 for 204 and paid dividends of $30,400

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