Question
On January 1, 2017, Grouper Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,800 shares $980,000 Common
On January 1, 2017, Grouper Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 9,800 shares | $980,000 | |
Common stock, $10 par value, issued and outstanding 189,000 shares | 1,890,000 |
To acquire the net assets of three smaller companies, Grouper 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 | 49,200 | |
Company B July 1, 2017 | 82,800 | |
Company C October 1, 2017 | 28,800 |
On May 14, 2017, Grouper realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Grouper recorded income of $321,600 from continuing operations (after tax). Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Grouper Industries as of December 31, 2017. (Round answer to 2 decimal places, e.g. $2.55.)
Grouper Industries Income Statement For the Year Ended December 31, 2017 | ||
Income From Continuing Operations = | $ | |
Discontinued Operations Gain, Net of Tax = | ||
Net Income / (Loss) = | $ |
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