A portion of the combined statement of income and retained earnings of Simba Inc. for the current
Question:
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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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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