Your answer is partially correct. Try again. On January 1, 2014, Lennon Industri

Question

Your answer is partially correct. Try again. On January 1, 2014, Lennon Industries had stock outstanding as follows. 6% Cumulative preferred stock, $111 par value, issued and outstanding 10,900 shares $1,209,900 Common stock, $11 par value, issued and outstanding 238,800 shares 2,626,800 To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 261,600 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2014 103,200 Company B July 1, 2014 124,800 Company C October 1, 2014 33,600 On May 14, 2014, Lennon realized a $140,400 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000. On December 31, 2014, Lennon recorded net income of $400,800 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 Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary

I need help finding 1) Income Before Extraordinary Item 2) Extraordinary Gain and 3) Net Income / Loss. Thank you.

Explanation / Answer

Income before extraordinary gain 400,800 Extraordinary Gain 140,400 Income before tax 541,200 less:Tax     [541,200 *.42] - 227,304 Net Income 313,896

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