FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, 2025, Pharoah Industries had stock outstanding as follows.
6% Cumulative preferred stock, $100 par value, issued and outstanding 10,300 shares
Common stock, $10 par value, issued and outstanding 188,000 shares
To acquire the net assets of three smaller companies, Pharoah authorized the issuance of an additional 162,000 common shares. Th
acquisitions took place as shown below.
Date of Acquisition
Company A April 1, 2025
Company B July 1, 2025
Company C October 1, 2025
$1,030,000
1,880,000
Shares Issued
50,400
80,400
31,200
On May 14, 2025, Pharoah realized a $88,800 (before taxes) gain on discontinued operations. On December 31, 2025, Pharoah
recorded income of $285,600 from continuing operations.
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Transcribed Image Text:On January 1, 2025, Pharoah Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,300 shares Common stock, $10 par value, issued and outstanding 188,000 shares To acquire the net assets of three smaller companies, Pharoah authorized the issuance of an additional 162,000 common shares. Th acquisitions took place as shown below. Date of Acquisition Company A April 1, 2025 Company B July 1, 2025 Company C October 1, 2025 $1,030,000 1,880,000 Shares Issued 50,400 80,400 31,200 On May 14, 2025, Pharoah realized a $88,800 (before taxes) gain on discontinued operations. On December 31, 2025, Pharoah recorded income of $285,600 from continuing operations.
Assuming a 20% tax 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.)
PHAROAH INDUSTRIES
Income Statement
10
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Transcribed Image Text:Assuming a 20% tax 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.) PHAROAH INDUSTRIES Income Statement 10
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