On January 1, 2017, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100par value,issued
Question:
On January 1, 2017, Stellar Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100par value,issued and outstanding9,900shares$990,000 Common stock, $10par value, issued and outstanding199,000shares 1,990,000
To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional160,800common shares. The acquisitions took place as shown below. (see chart attached)
On May 14, 2017, Stellar realized a $86,400(before taxes) insurance gain on discontinued operations.
On December 31, 2017, Stellar recorded income of $309,600from continuing operations (after tax).
Assuming a50% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2017.
Expert Answer:
