(EPS: Simple Capital Structure) On January 1, 2014, Lennon Industries had stock outstanding asfollows.6% Cumulative preferred stock, $100 par value,issued and outstanding 10,000 shares $1,000,000Common stock, $10 par value, issued andoutstanding 200,000 shares 2,000,000To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional160,000 common shares. The acquisitions took place as shown below.Date of Acquisition Shares IssuedCompany A April 1, 2014 50,000Company B July 1, 2014 80,000Company C October 1, 2014 30,000On May 14, 2014, Lennon realized a $90,000 (before taxes) insurance gain on the expropriation ofinvestments originally purchased in 2000.On December 31, 2014, Lennon recorded net income of $300,000 before tax and exclusive of the gain.InstructionsAssuming a 50% tax rate, compute the earnings per share data that should appear on the financial statementsof Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary.