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E16-20B (EPS: Simple Capital Structure) On January 1, 2014, Bio Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 250,000 shares $25,000,000 Common stock, $1 par value, issued and outstan

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E16-20B (EPS: Simple Capital Structure) On January 1, 2014, Bio Industries had stock outstanding as follows.;8% Noncumulative preferred stock, $100 par value;issued and outstanding 250,000 shares $25,000,000;Common stock, $1 par value, issued and;outstanding 600,000 shares 600,000;To acquire the net assets of three smaller companies, Bio issued an additional 600,000 common shares.;The acquisitions took place as follows.;Date of Acquisition Shares Issued;MicroBio February 1, 2014 200,000;BioTech June 1, 2014 80,000;SuperBio November 1, 2014 320,000;On December 31, 2014, Bio recorded net income of $9,862,000 before taxes. No dividends on the common or preferred were declared during 2014.;Instructions;Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements;of Bio Industries as of December 31, 2014.

 

Paper#78635 | Written in 18-Jul-2015

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