On January 1, 2020, Stellar Industries had stock outstanding as follows.6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000To acquire the net assets of three smaller companies, Stellar 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 48,000Company B July 1, 2020 82,800Company C October 1, 2020 30,000On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)

Earnings per share is a measure which says that how much earnings is available for equity…

Answered: On January 1, 2020, Stellar Industries…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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

6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares		$930,000
Common stock, $10 par value, issued and outstanding 220,000 shares		2,200,000

To acquire the net assets of three smaller companies, Stellar 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		48,000
Company B July 1, 2020		82,800
Company C October 1, 2020		30,000

On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).

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

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