On January 1, 2020, Metlock Industries had stock outstanding as follows.6% Cumulative preferred stock, $ 100 par value, issued and outstanding 10,800 shares $ 1,080,000Common stock, $ 10 par value, issued and outstanding 194,000 shares 1,940,000To acquire the net assets of three smaller companies, Metlock authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below.Date of Acquisition Shares IssuedCompany A April 1, 2020 51,600Company B July 1, 2020 78,000Company C October 1, 2020 31,200On May 14, 2020, Metlock realized a $ 91,200 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Metlock recorded income of $ 330,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Metlock Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.) Metlock IndustriesIncome Statement $ $

Weighted number of outstanding shares = 194,000×312 + 245,600×312 + 323,600×312 + 354,800×312…

Answered: On January 1, 2020, Metlock Industries…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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On January 1, 2020, Metlock Industries had stock outstanding as follows.

6% Cumulative preferred stock, $ 100 par value, issued and outstanding 10,800 shares		$ 1,080,000
Common stock, $ 10 par value, issued and outstanding 194,000 shares		1,940,000

To acquire the net assets of three smaller companies, Metlock authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below.

Date of Acquisition		Shares Issued
Company A April 1, 2020		51,600
Company B July 1, 2020		78,000
Company C October 1, 2020		31,200

On May 14, 2020, Metlock realized a $ 91,200 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Metlock recorded income of $ 330,000 from continuing operations (after tax).

Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Metlock Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)

Metlock Industries
Income Statement