On January 1, 2014, Lennon Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,000 shares $1,000,000 Common stock, $10 par value, issued and outstanding 200,000 shares 2,000,000 To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 160,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2014 50,000 Company B July 1, 2014 80,000 Company C October 1, 2014 30,000 On May 14, 2014, Lennon realized a $90,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000. On December 31, 2014, Lennon recorded net income of $300,000 before tax and exclusive of the gain. Instructions Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary .

1. On January 1, 2014, Lennon Industries had stock outstanding as
follows.
6% Cumulative preferred stock, $100 par value, issued and
outstanding 10,000 shares
$1,000,000
Common stock, $10 par value, issued and outstanding 200,000
shares
2,000,000
To acquire the net assets of three smaller companies, Lennon
authorized the issuance of an additional 160,000 common
shares. The acquisitions took place as shown below.
Date of Acquisition
Shares Issued
Company A April 1, 2014
50,000
Company B July 1, 2014
80,000
Company C October 1, 2014
30,000
On May 14, 2014, Lennon realized a $90,000 (before taxes)
insurance gain on the expropriation of investments originally
purchased in 2000.
On December 31, 2014, Lennon recorded net income of
$300,000 before tax and exclusive of the gain.
Instructions
Assuming a 50% tax rate, compute the earnings per share data
that should appear on the financial statements of Lennon
Industries as of December 31, 2014. Assume that the
expropriation is extraordinary