On January 1, 2020, Teal Industries had stock outstanding as follows.8% Noncumulative preferred stock, $100 par value, issued and outstanding 231,000 shares $23,100,000Common stock, $1 par value, issued and outstanding 633,000 shares 633,000To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows.Date of Acquisition Shares IssuedMicroBio February 1, 2020 192,000BioTech June 1, 2020 78,000SuperBio November 1, 2020 330,000On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020.Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.)Earnings per share $enter the earnings per share in dollar rounded to 2 decimal places

EPS = Net income available to common stock holder/ Weighted average no of shares

Answered: On January 1, 2020, Teal Industries had…

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

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

8% Noncumulative preferred stock, $100 par value, issued and outstanding 231,000 shares		$23,100,000
Common stock, $1 par value, issued and outstanding 633,000 shares		633,000

To acquire the net assets of three smaller companies, Teal issued an additional 600,000 common shares. The acquisitions took place as follows.

Date of Acquisition		Shares Issued
MicroBio February 1, 2020		192,000
BioTech June 1, 2020		78,000
SuperBio November 1, 2020		330,000

On December 31, 2020, Teal reported net income of $10,520,000 before taxes. No dividends on the common or preferred stock were declared during 2020.

Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.)

Earnings per share

$enter the earnings per share in dollar rounded to 2 decimal places

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