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
$
$

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Tundexi Tundexi · Answer 1 · 2021-02-06T02:04:15+01:00

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