On January 1, 2025, Teal Industries had stock outstanding as follows:8% Noncumulative preferred stock, $100 par value, issued and outstanding 242,000 sharesCommon stock, $1 par value, issued and outstanding 621,000 sharesDate of AcquisitionMicroBio February 1, 2025BioTech June 1, 2025To acquire the net assets of three smaller companies, Teal issued an additional 591,000 common shares. The acquisitions took place asfollows.SuperBio November 1, 2025Shares Issued213,000Earnings per share $84,000$24,200,000294,000621,000On December 31, 2025, Teal reported net income of $9,349,000 before taxes. No dividends on the common or preferred stock weredeclared during 2025.Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as ofDecember 31, 2025. (Round answer to 2 decimal places, e.g. 2.55.)

Earning Per Share EPS refers to the per share earnings of the company's available to the common…

Answered: On January 1, 2025, Teal Industries had…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2020, Chen Company acquired 10,000 shares of GHI Corporation for P600, 000. GHI Corporation has the following equity account on January 1, 2020. 10% Non-Cumulative Preference Shares, par value P100; Authorized shares, 100,000; Issued and outstanding, 50,000 shares - P 5,000,000 Ordinary Shares, P50 par value; Authorized shares, 500,000; Issued and outstanding, 75,000 shares Retained Earnings - 25,000,000 - 10,000,000 On January 1, 2021, Chen acquired an additional 5,000 shares of GHI Corporation for P300, 000. The acquisition resulted in 20% ownership, which is considered significant since Chen was able to get a seat in the board of directors of GHI Corporation. GHI Corporation has the following fair values of its shares as follows: 2020 - P65 per share 2021 - P72 per share GHI Corporation reported the following at year-end: Net Income Dividends 2020 2021 P5,000,000 6,500,000 P2,000,000 3,000,000 Requirements: 1. Prepare the necessary journal entries to record the above…
On January 1, 2025, Pharoah Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,300 shares $1,030,000 Common stock, $10 par value, issued and outstanding 188,000 shares 1,880,000 To acquire the net assets of three smaller companies, Pharoah authorized the issuance of an additional 162,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2025 50,400 Company B July 1, 2025 80, 400 Company C October 1, 2025 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.)
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. Stellar IndustriesIncome Statement…
On January 1, 2022, Mojito Corporation purchased 20% (20,000 shares) of the outstanding stock of Dulcinea Corporation for $153,000. During 2022, Dulcinea Corporation paid total dividends of $45,000 and earned $80,000 in net income. At the end of 2022, Dulcinea Corporation’s stock had a fair market value of $155,000. Required: Prepare the journal entries that Mojito would make during 2022 assuming that they do NOT have significant influence over Dulcinea as a result of their stock ownership (i.e. fair value method). Prepare the journal entries that Mojito would make during 2022 assuming that they do have significant influence over Dulcinea as a result of their stock ownership (i.e. equity method).
On January 1, 2020, Splish Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares $960,000 Common stock, $10 par value, issued and outstanding 181,000 shares 1,810,000 To acquire the net assets of three smaller companies, Splish authorized the issuance of an additional 159,600 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 49,200 Company B July 1, 2020 79,200 Company C October 1, 2020 31,200 On May 14, 2020, Splish realized a $90,000 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Splish recorded income of $312,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Splish Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.) Splish Industries Income…
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Carla Vista Corporation was organized on January 1, 2026 with the authorization of 1300000 shares of common stock with a par value of $6 per share. In 2026, the corporation had the following capital transactions: January 5 issued 650000 shares @ $11 per share July 28 purchased 76000 shares @ $11 per share December 31 sold the 76000 shares held in treasury @ $18 per share Carla Vista used the cost method to record the purchase and the reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2026? O $3782000. O $2558000. O $3250000. O $-0-.
M.T. Glass, Inc. purchased the following investments onJanuary 1, 2028:1. 21,000 shares (representing 42%) of AA Company stockfor $546,0002. 18,000 shares (representing 9%) of ZZ Company stockfor $306,000AA Company and ZZ Company reported the following informationfor the years 2028 and 2029:2028: AA Company ZZ CompanyNet income $140,000 $225,000Total dividends paid $ 78,000 $ 53,000Market value at Dec 31 $33 per share $22 per share2029: AA Company ZZ CompanyNet income $210,000 $280,000Total dividends paid $ 90,000 $125,000Market value at Dec 31 $35 per share $23 per shareCalculate the total investments shown in M.T. Glass, Inc.'sDecember 31, 2028 balance sheet (i.e., the balance in theInvestment in AA Company plus the balance in the Investmentin ZZ Company).

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