Question
On January 1, 2017, Wildhorse Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares $960,000 Common
On January 1, 2017, Wildhorse 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 183,000 shares | 1,830,000 |
To acquire the net assets of three smaller companies, Wildhorse 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 | 48,000 | |
Company B July 1, 2017 | 80,400 | |
Company C October 1, 2017 | 30,000 |
On May 14, 2017, Wildhorse realized a $92,400 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Wildhorse recorded income of $320,400 from continuing operations. Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Wildhorse Industries as of December 31, 2017
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