Question - On January 1, 2012, Bailey Industries had stock outstanding as follows.
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6% Cumulative preferred stock, $117 par value, issued and outstanding 10,100 shares
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$1,181,700
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Common stock, $11 par value, issued and outstanding 279,600 shares
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3,075,600
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To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 190,800 common shares. The acquisitions took place as shown below.
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Date of Acquisition
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Shares Issued
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Company A April 1, 2012
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67,200
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Company B July 1, 2012
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87,600
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Company C October 1, 2012
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36,000
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On May 14, 2012, Bailey realized a $100,800 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2012, Bailey recorded net income of $384,000 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.