one problem
On January 1, 2012, Bailey Industries had stock outstanding as follows.
Don't use plagiarized sources. Get Your Custom Essay on
Need an answer from similar question? You have just landed to the most confidential, trustful essay writing service to order the paper from.
Just from $13/Page
| 6% Cumulative preferred stock, $119 par value, issued and outstanding 10,800 shares |
$1,285,200 | |
| Common stock, $10 par value, issued and outstanding 241,200 shares |
2,412,000 |
To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 176,400 common shares. The acquisitions took place as shown below.
|
Date of Acquisition
|
Shares Issued
|
|
| Company A April 1, 2012 | 63,600 | |
| Company B July 1, 2012 | 85,200 | |
| Company C October 1, 2012 | 27,600 |
On May 14, 2012, Bailey realized a $106,800 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2012, Bailey recorded net income of $321,600 before tax and exclusive of the gain.
Assuming a 43% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)
|
Bailey Industries
Income Statement For the year ended December 31, 2012 |
||||||
|
$
|
|
$
[removed]
|
|||
