Question
on January 1 ,2017, Pronghorn Industries had stock outstanding as follows... 6% cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares........$960,000 common stock,
on January 1 ,2017, Pronghorn Industries had stock outstanding as follows...
6% cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares........$960,000
common stock, $10 par value, issued and outstanding 181,000 shares.........................$1,810,000
To acquire the net assets of three smaller companies,Pronghorn authorized the issuance of an additional 159,600 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 79,200
Company C October 1, 2017 31,200
On May 14, 2017, Pronghorn realized a $90,000 (before taxes) insurance gain on discontinued operations.
On December 31, 2017, Pronghorn recorded income of $312,000 from continuing operations (after tax).
Assuming a 50% tax rate, compute the earning per share data that should appear on the financial statements of Pronghorn Industries as of December 31,2017.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
