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question on january 1 2014 lennon industries had stock outstanding asfollows 6 cumul 4278412

Question

On January 1, 2014, Lennon Industries had stock outstanding asfollows.

6% Cumulative preferred stock, $101 par value iisued andoutstanding 11,100 shares- $1,121,100

Common stock, $11 par value, issued and oustanding 188,400shares- 2,072,400

To acquire the net assets of three smaller companies, Lennonauthorized the issuance of an additional 231,600 common shares. Theacquisitions took place as shown below.

Company A April 1 2014-85,200

Company B July 1 2014- 105,600

Company C October 1 2014- 40,800

On May 14, 2014, Lennon realized a $129,600 (before taxes)insurance gain on the expropriation of investments originallypurchased in 2000.

On December 31, 2014, Lennon recorded net income of $320,400before tax and exclusive of the gain.

Assuming a 43% tax rate, compute the earnings per share datathat should appear on the financial statements of Lennon Industriesas of December 31, 2014. Assume that the expropriation isextraordinary.

Income before Extraordinay Item=

Extraordinary Gain=

Net Income=

 

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