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Exercise 16-20 On January 1, 2020, Wildhorse Industries had stock outstanding as follows. 6% Cumulative preferred...

Exercise 16-20 On January 1, 2020, Wildhorse Industries had stock outstanding as follows.

6% Cumulative preferred stock, $100 par value, issued and outstanding 9,900 shares $990,000

Common stock, $10 par value, issued and outstanding 199,000 shares 1,990,000

To acquire the net assets of three smaller companies, Wildhorse 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 80,400

Company C October 1, 2020 28,800

On May 14, 2020, Wildhorse realized a $86,400 (before taxes) insurance gain on discontinued operations.

On December 31, 2020, Wildhorse recorded income of $309,600 from continuing operations (after tax).

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

Business   Accounting   
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Answer #1
Income from continuing operations (after tax).    309,600.00
Add : Tax      77,400.00
Income from continuing operations Before tax).    387,000.00
Extraordinary Gain      86,400.00
Total Incomee before tax    473,400.00
Tax at 20%      94,680.00
Income after tax    378,720.00
Preference Dividend      59,400.00
Net Income Available for Equity Shareholders    319,320.00
No of Shares Date of Issue No of Months
Opening Shares 199000 01-01-2020 12 199000
Company A 51600 01-04-2020 9 38700
Company B 80400 01-07-2020 6 40200
Company C 28800 01-10-2020 3 7200
285100

EPS = 319,320/285,100

=1.12

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