E 16-20 (EPS: Simple capital structure) On January 1, 2012, Bailey Industries had stock outstanding as follows. 6% Cumulative preferred stock, $103 par value, issued and outstanding 10,800 shar

E 16-20 (EPS: Simple capital structure) On January 1, 2012, Bailey Industries had stock outstanding as follows.

6% Cumulative preferred stock, $103 par value,

issued and outstanding 10,800 shares $1,112,400

Common stock, $11 par value, issued and

outstanding 280,800 shares 3,088,800

To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 180,000 common shares. The acquisitions took place as shown below.

Date of Acquisition Shares Issued

Company A April 1, 2012 60,000

Company B July 1, 2012 82,800

Company C October 1, 2012 37,200

On May 14, 2012, Bailey realized a $92,400 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.

On December 31, 2012, Bailey recorded net income of $361,200 before tax and exclusive of the gain.

Assuming a 47% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)

Bailey Industries

Income Statement

For the year ended December 31, 2012

Income Before Extraordinary Item $____________

Extraordinary Gain per Share $____________

Net Income $____________

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