(EPS: Simple Capital Structure) On January 1, 2014, Bio Industries had stock outstanding as follows.

8% Noncumulative preferred stock, $100 par value,

issued and outstanding 250,000 shares $25,000,000

Common stock, $1 par value, issued and

outstanding 600,000 shares 600,000

To acquire the net assets of three smaller companies, Bio issued an additional 600,000 common shares. The acquisitions took place as follows.

Date of Acquisition Shares Issued

MicroBio February 1, 2014		200,000
BioTech June 1, 2014		80,000
SuperBio November 1, 2014		320,000

On December 31, 2014, Bio recorded net income of $9,862,000 before taxes. No dividends on the common or preferred were declared during 2014.

Instructions

(a) Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial state ments of Bio Industries as of December 31, 2014.

(b) Prepare the EPS footnote required for 2014.