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Chapter 16: Q12BE. (page 875)

The 2017 income statement of Wasmeier Corporation showed net income of \(480,000 and a loss from discontinued operations of \)120,000. Wasmeier had 100,000 shares of common stock outstanding all year. Prepare Wasmeier’s income statement presentation of earnings per share.

Short Answer

Expert verified

Wasmeier’s income statement presentation of earnings per shareis as follows:

Income from discontinued operations $6.00

Discontinued operations (loss) $1.20

Net income $4.80

Step by step solution

01

Determining the earnings per share

Income from discontinued operations: ($600,000/100,000)

Discontinued operations (loss): ($120,000/100,000)

Net income: ($480,000/100,000)

02

Income statement presentation of earnings per share

Earnings Per Share
Income from discontinued operations
 $6.00
Discontinued operations (loss)
 ($1.20)
Net income
 $4.80

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Most popular questions from this chapter

Pechstein Corporation issued 2,000 shares of \(10 par value common stock upon conversion of 1,000 shares of \)50 par value preferred stock. The preferred stock was originally issued at \(60 per share. The common stock is trading at \)26 per share at the time of conversion. Record the conversion of the preferred stock

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Instructions

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