On January 1, 2025, Pharoah Industries had stock outstanding as follows. 6% Cumulative preferredstock, $100 par value, issued and outstanding 10,300 shares $1,030,000 Common stock, $10 parvalue, issued and outstanding 188,000 shares 1,880,000 To acquire the net assets of three smallercompanies, Pharoah authorized the issuance of an additional 162,000 common shares. Theacquisitions took place as shown below. Date of Acquisition Shares Issued Company A April1, 2025 50,400 Company B July 1, 2025 80, 400 Company C October 1, 2025 31, 200 On May14, 2025, Pharoah realized a $88,800 (before taxes) gain on discontinued operations. On December31, 2025, Pharoah recorded income of $285, 600 from continuing operations. Assuming a 20% taxrate, compute the basic earnings per share data that should appear on the financial statements ofPharoah Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.)

Sheridan industriesIncome statementIncome from continuing operation0.82Discontinued operation…

Answered: rate, compute the basic earnings per…

rate, compute the basic earnings per share data that should appear on the financial statements of Pharoah Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

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