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Income Statement and Earnings per Share for Discontinued Operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense $1,000,000   Loss from discontinued operations $240,000*   Weighted average number of shares outstanding 20,000   Applicable tax rate 40%   *Net of any tax effect.     Question Content Area a.  Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense.

Income Statement and Earnings per Share for Discontinued Operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense $1,000,000   Loss from discontinued operations $240,000*   Weighted average number of shares outstanding 20,000   Applicable tax rate 40%   *Net of any tax effect.     Question Content Area a.  Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 24E
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Income Statement and Earnings per Share for Discontinued Operations

Apex Inc. reports the following for a recent year:

Income from continuing operations before income tax expense $1,000,000  
Loss from discontinued operations $240,000*  
Weighted average number of shares outstanding 20,000  
Applicable tax rate 40%  
*Net of any tax effect.    

Question Content Area

a.  Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense.

b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: Income from continuing operations Loss from discontinued operations Net income $ 50 X 12 38 X
Transcribed Image Text:b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: Income from continuing operations Loss from discontinued operations Net income $ 50 X 12 38 X
Income Statement and Earnings per Share for Discontinued Operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Income tax expense a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. Apex Inc. Partial Income Statement For the Year Ended December 31 Income from continuing operations before income tax expense ✓ Income from continuing operations Loss on discontinued operations $1,000,000 $240,000* 20,000 Net income 40% 600,000 X 360,000 X
Transcribed Image Text:Income Statement and Earnings per Share for Discontinued Operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Income tax expense a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. Apex Inc. Partial Income Statement For the Year Ended December 31 Income from continuing operations before income tax expense ✓ Income from continuing operations Loss on discontinued operations $1,000,000 $240,000* 20,000 Net income 40% 600,000 X 360,000 X
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