Question

Prepare the lower portion of the 2021 income statement beginning with $800,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year.

Answer 1

To prepare the lower portion of the 2021 income statement, start with $800,000 income from continuing operations before income taxes. Subtract income taxes and any discontinued operations. Calculate EPS and include disclosures.

Step-by-step explanation:

To prepare the lower portion of the 2021 income statement beginning with $800,000 income from continuing operations before income taxes, you would follow these steps:

1. Start with the income from continuing operations before income taxes of $800,000.
2. Subtract income taxes to get the net income from continuing operations.
3. If there are any discontinued operations, subtract the amount from the net income from continuing operations.
4. Calculate the earnings per share (EPS) by dividing the net income from continuing operations by the number of shares outstanding (100,000 shares).
5. Include the EPS disclosures in the income statement.

Answer 2

Answer: (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.