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Calculate the consolidated basic EPS and diluted EPS

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Reference no: EM133062491

Question - Brafry Ltd has 200,000 ordinary shares, 40,000 nonvoting preference shares paying dividends of $5.00 per share. Each preference share is convertible into two ordinary shares. Brafry Ltd has 60, $1,000, 6% bonds issued at par each convertible into 100 ordinary shares.

Brafry Ltd owns 90% of Cetford Ltd's 40,000 ordinary shares and 85% of the 3,000 preferred shares paying dividend of $12,000 per annum and convertible into two ordinary shares.

The net income before interest of Brafry Ltd and Cetford Ltd was $1,200,000 and $200,000 respectively for the year ended December 31, 2020. Assume there are no taxes.

Calculate the consolidated basic EPS and diluted EPS for the year ended December 31, 2020.

Reference no: EM133062491

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