On January 1, 2008, Lennon Industries had stock outstanding as

On January 1, 2008, Lennon Industries had stock outstanding as follows.

6% Cumulative preferred stock, $100 par value,

issued and outstanding 10,000 shares ....$1,000,000

Common stock, $10 par value, issued and

outstanding 200,000 shares ..........2,000,000

To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 160,000 common shares. The acquisitions took place as shown below.

Date of Acquisition ......Shares Issued

Company A April 1, 2008 .....50,000

Company B July 1, 2008 .......80,000

Company C October 1, 2008 ....30,000

On May 14, 2008, Lennon realized a $90,000 (before taxes) insurance gain on the expropriation of investments originally purchased in 1994.

On December 31, 2008, Lennon recorded net income of $300,000 before tax and exclusive of the gain.

Instructions

Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of

Lennon Industries as of December 31, 2008. Assume that the expropriation is extraordinary.


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