Question
On January 1, 2017, Sunland Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common
On January 1, 2017, Sunland Industries had stock outstanding as follows.
| 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares | $930,000 | |
| Common stock, $10 par value, issued and outstanding 220,000 shares | 2,200,000 |
To acquire the net assets of three smaller companies, Sunland 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 | 48,000 | |
| Company B July 1, 2017 | 82,800 | |
| Company C October 1, 2017 | 30,000 |
On May 14, 2017, Sunland realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Sunland recorded income of $282,000 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. (Round answer to 2 decimal places, e.g. $2.55.)
| Sunland Industries Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 | ||
| Discontinued Operations Gain, Net of TaxDividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $ | |
| Discontinued Operations Gain, Net of TaxDividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | ||
| Discontinued Operations Gain, Net of TaxDividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $ | |
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