Question
On January 1, 2017, Sunland Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,600 shares $1,060,000 Common
On January 1, 2017, Sunland Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 10,600 shares | $1,060,000 | |
Common stock, $10 par value, issued and outstanding 195,000 shares | 1,950,000 |
To acquire the net assets of three smaller companies, Sunland authorized the issuance of an additional 158,400 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued | |
Company A April 1, 2017 | 52,800 | |
Company B July 1, 2017 | 76,800 | |
Company C October 1, 2017 | 28,800 |
On May 14, 2017, Sunland realized a $86,400 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Sunland recorded income of $276,000 from continuing operations (after tax). Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Sunland Industries as of December 31, 2017.
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