*Exercise 16-20
On January 1, 2014, Lennon Industries had stock outstanding as follows.
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6% Cumulative preferred stock, $109 par value,   issued and outstanding 11,700 shares$1,275,300Common stock, $12 par value, issued and   outstanding 206,400 shares2,476,800
To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 236,400 common shares. The acquisitions took place as shown below.
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Date of Acquisition
Shares Issued
Company A April 1, 201488,800
Company B July 1, 2014109,200
Company C October 1, 201438,400
On May 14, 2014, Lennon realized a $133,200Â (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
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On December 31, 2014, Lennon recorded net income of $366,000Â before tax and exclusive of the gain.
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Assuming a 45% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)
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Lennon Industries
Income Statement
For the year ended December 31, 2014
Income Before Extraordinary Item
$
Extraordinary Gain
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Net Income / (Loss)
$
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Posted 21 Apr 2017 03:04 AM
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