Question
On January 1, 2017, Crane Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,200 shares $920,000 Common
On January 1, 2017, Crane Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 9,200 shares | $920,000 | |
Common stock, $10 par value, issued and outstanding 191,000 shares | 1,910,000 |
To acquire the net assets of three smaller companies, Crane authorized the issuance of an additional 157,200 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued | |
Company A April 1, 2017 | 49,200 | |
Company B July 1, 2017 | 78,000 | |
Company C October 1, 2017 | 30,000 |
On May 14, 2017, Crane realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Crane recorded income of $283,200 from continuing operations (after tax). Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Crane 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