Question
On January 1, 2020, Blossom Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,700 shares $970,000 Common
On January 1, 2020, Blossom Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 9,700 shares | $970,000 | |
Common stock, $10 par value, issued and outstanding 203,000 shares | 2,030,000 |
To acquire the net assets of three smaller companies, Blossom authorized the issuance of an additional 163,200 common shares. The acquisitions took place as shown below.
Date of Acquisition | Shares Issued | |
Company A April 1, 2020 | 49,200 | |
Company B July 1, 2020 | 82,800 | |
Company C October 1, 2020 | 31,200 |
On May 14, 2020, Blossom realized a $91,200 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Blossom recorded income of $330,000 from continuing operations (after tax). Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Blossom Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)
Blossom Industries Income Statement December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 | ||
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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