E16-20B (EPS: Simple Capital Structure) On January 1, 2014, Bio Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $100 par value, issued and outstanding 250,000 shares $25,000,000 Common stock, $1 par value, issued and outstan

E16-20B (EPS: Simple Capital Structure) On January 1, 2014, Bio Industries had stock outstanding as follows.

8% Noncumulative preferred stock, $100 par value,

issued and outstanding 250,000 shares                                               $25,000,000

Common stock, $1 par value, issued and

outstanding 600,000 shares                                                                            600,000

To acquire the net assets of three smaller companies, Bio issued an additional 600,000 common shares.

The acquisitions took place as follows.

                                           Date of Acquisition                          Shares Issued

                                       MicroBio February 1, 2014                      200,000

                                       BioTech June 1, 2014                                80,000

                                       SuperBio November 1, 2014                 320,000

On December 31, 2014, Bio recorded net income of $9,862,000 before taxes. No dividends on the common or preferred were declared during 2014.

Instructions

Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements

of Bio Industries as of December 31, 2014.