Question
On January 1, 2017, Blossom Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common
On January 1, 2017, Blossom Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares | $930,000 | |
Common stock, $10 par value, issued and outstanding 220,000 shares | 2,200,000 |
To acquire the net assets of three smaller companies, Blossom authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued |
Company A April 1, 2017 | 48,000 |
Company B July 1, 2017 | 82,800 |
Company C October 1, 2017 | 30,000 |
- On May 14, 2017, Blossom realized a $93,600 (before taxes) insurance gain on discontinued operations. - On December 31, 2017, Blossom recorded income of $282,000 from continuing operations (after tax).
Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Blossom Industries as of December 31, 2017
Blossom Industries Income Statement For the Year Ended December 31, 2017 Income From Continuing Operations 2.66 Discontinued Operations Gain, Net of Tax 0.55 Net Income /(Loss) $ 3.22Step by Step Solution
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