1. Net Income [including a discontinued operations gain… 1 answer below »

1. Net Income [including a discontinued operations gain (net of tax) of $66,000] 2. Capital Structure a. Cumulative 5% preferred stock, $100 par 6,500 shares issued and outstanding b. $10 par common stock, 74,000 shares outstanding on January 1. On April 1, 40,000 shares were issued for cash. On October 1, 16,000 shares were purchased and retired. c. On January 2 of the current year Starr purchased Oslo Corporation. One of the terms of the purchase was that if Oslo net income for the following year is $240,000 or more, 40,000 additional shares would be issued to Oslo stockholders next year Oslo's net income for the current year was $2,600,000. 3. Other Information a. Average market price per share of common stock during entire year b. Income tax rate
5355,000
$650,000 $1,000,000
$30
30%
•¦• (al) Compute weighted average shares outstanding. Weighted average shares outstanding Click if you would like to Show Work for this question: