Question

Apex Inc. reports the following for a recent year: Income from continuing operations before income tax $1,860,000 Loss from discontinued operations $235,000* Weighted average number of shares outstanding 10,000 Applicable tax rate 40% *Net of any tax effect 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.** ** Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. Round your answers to two decimal places.

Answer 1

A)

Income statement

Income from continuing operations before income tax	1,860,000
Income tax	(744,000)
Income before irregular items	1,116,000
Loss from discontinued operations	(235,000)
Net income	881,000

B)

Earnings per share (Income before irregular items/Weighted average number of shares outstanding) (1,116,000/10,000)	111.6
Earnings per share (Loss from discontinued operations/Weighted average number of shares outstanding) (- 235,000/10,000)	(23.5)
Net Earnings per share	$88.1

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