Question
On January 1, 2014, Lennon Industries had stock outstanding as follows. 6% Cumulative preferred stock, $101 par value, issued and outstanding 10,300 shares $1,040,300 Common
On January 1, 2014, Lennon Industries had stock outstanding as follows.
6% Cumulative preferred stock, $101 par value, issued and outstanding 10,300 shares | $1,040,300 | |
Common stock, $11 par value, issued and outstanding 234,000 shares | 2,574,000 |
To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 201,600 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued | |
Company A April 1, 2014 | 69,600 | |
Company B July 1, 2014 | 90,000 | |
Company C October 1, 2014 | 42,000 |
On May 14, 2014, Lennon realized a $110,400 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000. On December 31, 2014, Lennon recorded net income of $392,400 before tax and exclusive of the gain. Assuming a 44% 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. (Round answer to 2 decimal places, e.g. $2.55.)
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