On January 1, 2023, Cullumber Limited had shares outstanding as follows: 5% cumulative preferred shares, $100 par value, 10,000 shares issued and outstanding Common shares, 201,000 shares issued and outstanding To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 306,000 common shares. The acquisitions were as follows: Date of Acquisition Company A: April 1, 2023 Company B: July 1, 2023 Company C: October 1, 2023 Shares Issued 164,000 83,000 59,000 On May 14, 2023, Cullumber realized a $99,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2003. (a) On December 31, 2023, the company recorded income of $685,000 before tax, not including the discontinued operation gain. Cullumber has a 30% tax rate. Calculate the weighted average number of common shares at December 31, 2023. $1,000,000 2,010,000 Weighted average number of shares outstanding B. Calculate the earnings per share for 2023 as it should be reported to shareholders Income before gain from discontinued operations $enter a dollar amount Discontinued operations gain net of tax $enter a dollar amount Net income
On January 1, 2023, Cullumber Limited had shares outstanding as follows: 5% cumulative preferred shares, $100 par value, 10,000 shares issued and outstanding Common shares, 201,000 shares issued and outstanding To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 306,000 common shares. The acquisitions were as follows: Date of Acquisition Company A: April 1, 2023 Company B: July 1, 2023 Company C: October 1, 2023 Shares Issued 164,000 83,000 59,000 On May 14, 2023, Cullumber realized a $99,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2003. (a) On December 31, 2023, the company recorded income of $685,000 before tax, not including the discontinued operation gain. Cullumber has a 30% tax rate. Calculate the weighted average number of common shares at December 31, 2023. $1,000,000 2,010,000 Weighted average number of shares outstanding B. Calculate the earnings per share for 2023 as it should be reported to shareholders Income before gain from discontinued operations $enter a dollar amount Discontinued operations gain net of tax $enter a dollar amount Net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, Cullumber Limited had shares outstanding as follows:
5% cumulative preferred shares, $100 par value, 10,000 shares issued and outstanding
Common shares, 201,000 shares issued and outstanding
To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 306,000 common shares.
The acquisitions were as follows:
Date of Acquisition
Company A: April 1, 2023
Company B: July 1, 2023
Company C: October 1, 2023
Shares Issued
164,000
83,000
59,000
On May 14, 2023, Cullumber realized a $99,000 gain (before tax) on a discontinued operation from a business segment that had
originally been purchased in 2003.
(a)
On December 31, 2023, the company recorded income of $685,000 before tax, not including the discontinued operation gain.
Cullumber has a 30% tax rate.
Calculate the weighted average number of common shares at December 31, 2023.
$1,000,000
2,010,000
Weighted average number of shares outstanding
B. Calculate the earnings per share for 2023 as it should be reported to shareholders
Income before gain from discontinued operations
$enter a dollar amount
Discontinued operations gain net of tax
$enter a dollar amount
Net income
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