Question
On January 1, 2017, Martinez Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,100 shares $910,000 Common
On January 1, 2017, Martinez Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 9,100 shares | $910,000 | |
Common stock, $10 par value, issued and outstanding 186,000 shares | 1,860,000 |
To acquire the net assets of three smaller companies, Martinez 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 | 50,400 | |
Company B July 1, 2017 | 79,200 | |
Company C October 1, 2017 | 31,200 |
On May 14, 2017, Martinez realized a $86,400 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Martinez recorded income of $289,200 from continuing operations. Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Martinez Industries as of December 31, 2017.
Discount on Operations Gain, Net of Tax:
Income from Continuing Operations:
Net income/ Loss
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