istuntihued operations and (B) net income Appendix 1 EX 14-24 Income statement a

Question

istuntihued operations and (B) net income Appendix 1 EX 14-24 Income statement and earnings per share for discontinued operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate Net of any tax effect. 1,000,000 240,000* 20,000 40% A. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax. B. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items.

Explanation / Answer

A.

Apex Inc.

Statement of earnings & comprehensive income for the year ended

B.

Earnings per common share = Net income / Weighted average number of common shares outstanding

= 360,000 / 20,000

= 18

Income from continuing operations before income tax 1,000,000 less : provison for tax (1,000,000*40%) 400,000 Income from continunig operations 600,000 loss from discontinued operations 240,000 Net income 360,000 Earnings per share Income from continunig operations (600,000/20,000) 30 Income from discontinued operations (240,000/20,000) (12) Net income per share 18

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