Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

image text in transcribed

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) $ 3.22

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

9th Canadian Edition volume 2

013269008X, 978-0133122855, 133122859, 978-0132690089

More Books

Students also viewed these Accounting questions