1496000 Earnings per share Income from continuing operations 389 a Discontinued

1496000 earnings per share income from continuing

This preview shows page 5 - 8 out of 8 pages.

1,496,000 Earnings per share: Income from continuing operations .............................. $ 3.89 a Discontinued operations Loss on operations, net of tax ............................ $0.18 Loss on disposal, net of tax ................................ 0.88 (1.06) Net income ....................................................................... $ 2.83 b a $2,026,000 $80,000 = $3.89 500,000 shares b $1,496,000 $80,000 = $2.83 500,000 shares
Image of page 5
DICKINSON COMPANY Retained Earnings Statement For the Year Ended December 31, 2017 Retained earnings, January 1 ............................................ $ 980,000 Add: Net income ............................................................. 1,496,000 2,476,000 Less Dividends declared on: Preferred stock ....................................................... $ 80,000 Common stock ....................................................... 250,000 330,000 Retained earnings, December 31 ...................................... $ 2,146,000 PROBLEM 4-7 WADE CORP. Income Statement (Partial) For the Year Ended December 31, 2017 Income from continuing operations before income tax ............................................... $1,200,000* Income tax .................................................... 456,000** Income from continuing operations ...................... 744,000 Discontinued operations Loss from operations of discontinued subsidiary .......................... $ 90,000 Less: Applicable income tax reduction ($90,000 .38) .......... 34,200 $ 55,800 Loss from disposal of subsidiary ................... 100,000 Less: Applicable income tax reduction ($100,000 .38) ........ 38,000 62,000 (117,800) Net income .............................................................. $ 626,200 Per share of common stock: Income from continuing operations ($744,000 ÷ 150,000) ........................................................................ $4.96 Discontinued operations, net of tax .................................................. (0.79) Net income ($626,200 ÷ 150,000) ....................................................... $4.17
Image of page 6