& E17A-26 (similar to) Question Help * Faller Academy Surplus had 50,000 shares

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& E17A-26 (similar to) Question Help * Faller Academy Surplus had 50,000 shares of common stock and 7,000 shares of 5%, $10 par value preferred stock outstanding through December 31, 2016, Income from continuing operations for 2016 was $628,500, and loss on discontinued operations (net of income tax saving) was $45,000. Faller also had an extraordinary gain (net of tax) of $145,000. Compute Fallers earnings per share for 2016, starting with income from continuing operations. (Enter all EPS amounts to the nearest cent, SX.XX. Use parentheses or a minus sign for amounts reducing the income from continuing operations.) Begin by selecting the formula to compute the earnings per share Earnings per share(Net income - Preferred dividends) / Weighted average number of common shares outstanding Now, compute Faller's earnings per share for 2016, starting with income from continuing operations Earnings per Share of Common Stock (50,000 shares outstanding): Income From Continuing Operations Loss From Discontinued Operations Income Before Extraordinary Items Extraordinary Item Net Income Choose from any list or enter any number in the input fields and then click Check Answer

Explanation / Answer

EPS =Income/Sharesoutstanding

Earniings per share of common stock (50000 Shares outstanding) EPS Income From contined operation 628500 12.57 Loss from discontinued operation -45000 -0.9 Income before Extraordinary 583500 11.67 Extraordinary item 145000 2.9 Net income 728500 14.57

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