Assuming a 42 tax rate compute the earnings per share data

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Reference no: EM13567881

On January 1, 2012, Bailey Industries had stock outstanding as follows.

6% Cumulative preferred stock, $109 par value, issued and outstanding 10,200 shares		$1,111,800
Common stock, $11 par value, issued and outstanding 288,000 shares		3,168,000

To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 204,000 common shares. The acquisitions took place as shown below.

Date of Acquisition		Shares Issued
Company A April 1, 2012		70,800
Company B July 1, 2012		93,600
Company C October 1, 2012		39,600

On May 14, 2012, Bailey realized a $108,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2012, Bailey recorded net income of $325,200 before tax and exclusive of the gain.
Assuming a 42% 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.

Bailey Industries Income Statement For the year ended December 31, 2012
		$

		$

Reference no: EM13567881

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