Assuming a 43 tax rate compute the earnings per share data

Reference no: EM13571844

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

6% Cumulative preferred stock, $111 par value, issued and outstanding 11,300 shares		$1,254,300
Common stock, $11 par value, issued and outstanding 204,000 shares		2,244,000

To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 234,000 common shares. The acquisitions took place as shown below.

Date of Acquisition		Shares Issued
Company A April 1, 2012		92,400
Company B July 1, 2012		116,400
Company C October 1, 2012		25,200

On May 14, 2012, Bailey realized a $126,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2012, Bailey recorded net income of $415,200 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
DividendsExpensesExtraordinary Loss per shareExtraordinary Gain per shareIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss) per shareRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$
DividendsExpensesExtraordinary Loss per shareExtraordinary Gain per shareIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss) per shareRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesExtraordinary Loss per shareExtraordinary Gain per shareIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss) per shareRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

Reference no: EM13571844

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