Question
On January 1, 2012, Bailey Industries had stock outstanding as follows. 6% Cumulative preferred stock, $118 par value, issued and outstanding 10,400 shares $1,227,200 Common
On January 1, 2012, Bailey Industries had stock outstanding as follows.
6% Cumulative preferred stock, $118 par value, issued and outstanding 10,400 shares | $1,227,200 | |
Common stock, $11 par value, issued and outstanding 261,600 shares | 2,877,600 |
To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 174,000 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued | |
Company A April 1, 2012 | 62,400 | |
Company B July 1, 2012 | 85,200 | |
Company C October 1, 2012 | 26,400 |
On May 14, 2012, Bailey realized a $93,600 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000. On December 31, 2012, Bailey recorded net income of $342,000 before tax and exclusive of the gain. Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary.
Bailey Industries Income Statement For the year ended December 31, 2012
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