Question
On January 1, 2014, Lennon Industries had stock outstanding as follows. 6% Cumulative preferred stock, $101 par value iisued and outstanding 11,100 shares- $1,121,100 Common
On January 1, 2014, Lennon Industries had stock outstanding as follows.
6% Cumulative preferred stock, $101 par value iisued and outstanding 11,100 shares- $1,121,100
Common stock, $11 par value, issued and oustanding 188,400 shares- 2,072,400
To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 231,600 common shares. The acquisitions took place as shown below. Company A April 1 2014-85,200
Company B July 1 2014- 105,600
Company C October 1 2014- 40,800
On May 14, 2014, Lennon realized a $129,600 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2014, Lennon recorded net income of $320,400 before tax and exclusive of the gain.
Assuming a 43% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary.
Income before Extraordinay Item=
Extraordinary Gain=
Net Income=
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