Question

A portion of the combined statement of income and retained earnings of Simba Inc. for the current year ended December 31 follows:
During the year, Simba Inc. suffered a loss from discontinued operations of $1,740,000 after the applicable income tax reduction of $1.2 million.
At the end of the current year, Simba Inc. has outstanding 12.5 million common shares and 90,000 shares of 6% preferred.
On April 1 of the current year, Simba Inc. issued 1 million common shares for $32 per share to help finance the loss.
Instructions
Calculate the earnings per share on common shares for the current year as it should be reported to shareholders.


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  • CreatedAugust 23, 2015
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