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

Question

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

To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 276,000 common shares. The acquisitions took place as shown below.

On May 14, 2012, Bailey realized a $158,400 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.

On December 31, 2012, Bailey recorded net income of $348,000 before tax and exclusive of the gain.

Assuming a 44% 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.)

6% Cumulative preferred stock, $119 par value,
issued and outstanding 10,400 shares
$1,237,600 Common stock, $11 par value, issued and
outstanding 271,200 shares 2,983,200

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