A corporation reports earnings per share of $1.38 for the most recent year and $1.10 for the

Question:

A reports earnings per share of $1.38 for the most recent year and $1.10 for the preceding year. The $1.38 includes a $0.45-per-share gain from insurance proceeds related to a fully depreciated asset that was destroyed by fire.
a. Should the composition of the $1.38 be disclosed in the financial reports?
b. On the basis of the limited information presented, would you conclude that operations had improved or declined?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...