Question

View Policies Current Attempt in Progress At December 31, 2019, Wildhorse Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,579 shares $10,757,900 Common stock, $5 par, 4,074,720 shares 20,373,600 During 2020, Wildhorse did not issue any additional common stock. The following also occurred during 2020. Income from continuing operations before taxes $21,919,000 Discontinued operations (loss before taxes) $3,300,700 Preferred dividends declared $1,075,790 Common dividends declared $2,181,700 Effective tax rate 35 %
Compute earnings per share data as it should appear in the 2020 income statement of Wildhorse Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
Earnings Per Share
$
$

Answer 1

Answer:

                         Wildhorse Corporation

                       Income Statement (Partial)

                 For the year ended Dec 31, 2020

Particulars                                                      Amount

Net Income

Income from continuing operation                       $21,919,000

before income tax

Income Tax (35%)                                                  $7,671,650

Income from continuing operation                       $14,247,350

Discontinued operations

Losses before taxes            $3,300,700  

Less: Income tax (35%)        $1,155,245                $2,145,455

Net Income                                                             $12,101,895

Preferred dividend declared                   $1,075,790

Weighted average common share outstanding  4,074,720 shares

Earning per share

Income from continuing operation               $3.23

($14,247,350 - $1,075,790)/4074720  

Less: Discontinued operation, net of tax   -$0.53

($2,145,455/4074720)

Net Income                                                    $2.71

($12,101,895 - $1,075,790) / 4074720