Question

Covey Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. The year 2014 was interesting for Covey, which reported the following on its income statement (in millions):
Net revenues................................................................ $3,972
Total expenses and other.............................................. 3,227
Income from continuing operations.............................. 745
Income from discontinued operations, net of tax ......... 92
Income before extraordinary item................................ 873
Extraordinary gain, net of tax...................................... 6
Net income................................................................... $ 843
During 2014, Covey had the following (in millions, except for par value per share):
Common stock, $ 0.02 par value, 850 shares issued................ $ 17
Treasury stock, 210 shares at cost........................................... (3,542)

Requirement
1. Using the end- of- chapter summary problem (pages 637– 638) as an example, show how Covey should report earnings per share for 2014; round EPS to the nearest cent.



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  • CreatedJuly 25, 2014
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