E16-20 (EPS: Simple Capital Structure)

Exercise 16-20
On January 1, 2014, Lennon Industries had stock outstanding as follows.6% Cumulative preferred stock, $100 par value, issued and outstanding 10,000 shares $1,000,000 Common stock, $10 par value, issued and outstanding 200,000 shares $2,000,000. To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 160,000 common shares. The acquisitions took place as shown below.
Date of AcquisitionShares Issued
Company A April 1, 201450,000
Company B July 1, 201480,000
Company C October 1, 2014 30,000
On May 14, 2014, Lennon realized a $90,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.
On December 31, 2014, Lennon recorded net income of $300,000 before tax and exclusive of the gain.
Assuming a 50% 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

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