Question
On January 1, 2017, Cheyenne Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100par value,issued and outstanding9,800shares$980,000Common stock, $10par value, issued and outstanding185,000shares1,850,000
On January 1, 2017, Cheyenne Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100par value,issued and outstanding9,800shares$980,000Common stock, $10par value, issued and outstanding185,000shares1,850,000
To acquire the net assets of three smaller companies, Cheyenne authorized the issuance of an additional159,600common shares. The acquisitions took place as shown below.
Date of Acquisition
Shares Issued
Company A April 1, 201752,800Company B July 1, 201776,800Company C October 1, 201730,000
On May 14, 2017, Cheyenne realized a $91,200(before taxes) insurance gain on discontinued operations.
On December 31, 2017, Cheyenne recorded income of $273,600from continuing operations (after tax).
Assuming a50% tax rate, compute the earnings per share data that should appear on the financial statements of Cheyenne Industries as of December 31, 2017.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started