Exercise 17-4 (Part Level Submission) On January 1, 2017, Sheridan Limited had shares outstanding as follows: 6% cumulative preferred shares, $100 par value, 10,900 shares issued and outstanding $1,090,000 Common shares, 205,000 shares issued and outstanding To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 313,000 common shares. The acquisitions were as follows 2,050,000 Date of Acquisition Shares Issued Company A: April 1, 2017 Company B: July 1, 2017 Company C: October 1, 2017 165,000 75,000 73,000 On May 14, 2017, Sheridan realized a $100,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 1997. On December 31, 2017, the company recorded income of $689,000 before tax, not including the discontinued operation gain. Sheridan has a 50% tax rate. (b) Your answer is incorrect. Try again. Assume that Sheridan declared a 1 for 2 reverse stock split on February 10 2018, and that the companys financial statements or the year ended December 3, 2017 were issued on re ruary Calculate earnings per share for 2017 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) 2018. Earnings per share Income before gain from discontinued operations 4.31 Discontinued operations gain net of tax Net income 5.08