1. On a corporate income statement, income from continuing operations
[A] will exceed net income.
[B] will be less than net income.
[C] will equal net income.
[D] can equal, exceed, or be less than net income.
2. Bowen Corporation had 30,000 shares of common stock outstanding from January 1 to April 1
and 50,000 shares from April 1 to December 31. What is the weighted-average number of shares
used for earnings per share calculations?
3. A company had 48,000 shares outstanding from January 1 to June 1 and 72,000 shares
outstanding from June 1 to December 31. What is the weighted-average number of shares used in
earnings per share calculations?
4. A company had the following amounts of common stock outstanding: 9,000 shares from
January through April, 15,000 shares from May through October, and 25,000 shares from
November through December. What is the weighted-average number of shares used in earnings
per share calculations?
5. On December 31, 20x0, Kallman Corporation had 160,000 shares of common stock issued and
outstanding. On April 1, 20x1, an additional 40,000 shares of common stock were issued for
cash. During 20x1, Kallman declared and paid dividends of $150,000 on its 20,000 shares of
nonconvertible preferred stock. Net income for 20x1 amounted to $400,000. Kallman’s earnings
per share (rounded to the nearest cent) for 20x1 are