Exercise 17-4 (Part Level Submission) On January 1, 2020, Wildhorse Limited had shares outstanding as follows: 7% cumulative preferred shares, $100 par value, 10,400 shares issued and outstanding $1,040,000 Common shares, 208,000 shares issued and outstanding 2,080,000 To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 311,000 common shares. The acquisitions were as follows: Date of Acquisition Company A: April 1, 2020 Company B: July 1, 2020 Company C: October 1, 2020 Shares Issued 167,000 86,000 58,000 On May 14, 2020, Wildhorse realized a $95,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2000. On December 31, 2020, the company recorded income of $691,000 before tax, not including the discontinued operation gain. Wildhorse has a 40% tax rate. (a) Your answer is correct. Calculate the earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share 0.87 Income before gain from discontinued operations Discontinued operations gain net of tax 0.14 Net income 1.01 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT (b) Your answer is partially correct. Try again. Assume that Wildhorse declared a 1-for-2 reverse stock split on February 10, 2021, and that the company's financial statements for the year ended December 31, 2020, were issued on February 28, 2021. Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Income before gain from discontinued operations Earnings per share 1.75 Discontinued operations gain net of tax 0.20 * Net income 1.55 LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used SAVE FOR LATER SUBMIT ANSWER Exercise 17-4 (Part Level Submission) On January 1, 2020, Wildhorse Limited had shares outstanding as follows: 7% cumulative preferred shares, $100 par value, 10,400 shares issued and outstanding $1,040,000 Common shares, 208,000 shares issued and outstanding 2,080,000 To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 311,000 common shares. The acquisitions were as follows: Date of Acquisition Company A: April 1, 2020 Company B: July 1, 2020 Company C: October 1, 2020 Shares Issued 167,000 86,000 58,000 On May 14, 2020, Wildhorse realized a $95,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2000. On December 31, 2020, the company recorded income of $691,000 before tax, not including the discontinued operation gain. Wildhorse has a 40% tax rate. (a) Your answer is correct. Calculate the earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share 0.87 Income before gain from discontinued operations Discontinued operations gain net of tax 0.14 Net income 1.01 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT (b) Your answer is partially correct. Try again. Assume that Wildhorse declared a 1-for-2 reverse stock split on February 10, 2021, and that the company's financial statements for the year ended December 31, 2020, were issued on February 28, 2021. Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Income before gain from discontinued operations Earnings per share 1.75 Discontinued operations gain net of tax 0.20 * Net income 1.55 LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used