Question
OnJanuary1,2017,CyclopInc.hadstockoutstandingasfollows. 6%Cumulativepreferredstock, $100parvalue,issuedand outstanding10,000shares $1,000,000 Commonstock,$10parvalue, issuedandoutstanding200,000 shares 2,000,000 Toacquirethenetassetsofthreesmallercompanies,CyclopInc.authorizedtheissuanceofan additional160,000commonshares.Theacquisitionstookplaceasshownbelow: DateofAcquisition SharesIssued CompanyAApril1,2017 50,000 CompanyBJuly1,2017 80,000 CompanyCOctober1, 2017 30,000 OnMay14,2017,Cycloprealizeda$90,000(beforetaxes)gainondiscontinuedoperations. OnDecember31,2017,Cycloprecordedincomeof$300,000fromcontinuingoperations. Instructions Assuminga50%taxrate,computetheearningspersharedatathatshouldappearonthe financialstatementsofCyclopInc.asofDecember31,2017.
OnJanuary1,2017,CyclopInc.hadstockoutstandingasfollows. 6%Cumulativepreferredstock, $100parvalue,issuedand outstanding10,000shares $1,000,000 Commonstock,$10parvalue, issuedandoutstanding200,000 shares 2,000,000 Toacquirethenetassetsofthreesmallercompanies,CyclopInc.authorizedtheissuanceofan additional160,000commonshares.Theacquisitionstookplaceasshownbelow: DateofAcquisition SharesIssued CompanyAApril1,2017 50,000 CompanyBJuly1,2017 80,000 CompanyCOctober1, 2017 30,000 OnMay14,2017,Cycloprealizeda$90,000(beforetaxes)gainondiscontinuedoperations. OnDecember31,2017,Cycloprecordedincomeof$300,000fromcontinuingoperations. Instructions Assuminga50%taxrate,computetheearningspersharedatathatshouldappearonthe financialstatementsofCyclopInc.asofDecember31,2017.
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Case Studies In Forensic Accounting And Fraud Auditing
Authors: Professor D. Larry Crumbley, Wilson LaGraize, Christopher E. Peters
2nd Edition
