1.) On January 1, 2012, Bailey Industries had stock outstanding as follows. 6% Cumulative preferred stock, $119 par value, issued and outstanding 10,900 shares $1,297,100 Common stock, $11 par value, issued and outstanding 283,200 shares 3,115,200 To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 270,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2012 110,400 Company B July 1, 2012 130,800 Company C October 1, 2012 28,800 On May 14, 2012, Bailey realized a $150,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000. On December 31, 2012, Bailey recorded net income of $318,000 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. (Round answer to 2 decimal places, e.g. $2.55.) Bailey Industries Income Statement For the year ended December 31, 2012 Income before extraordinary item $ Extraordinary Gain per share $ Net Income/Loss per share
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