Barks Bites Ltd. reported the following for 2015 (all amounts are before taxes):

Sales, net......................................................................................... $685,000

Cost of goods sold.......................................................................... 458,000

Selling and administrative expenses............................................... 56,000

Interest expense.............................................................................. 2,000

Gain on sale of equipment.............................................................. 4,000

Gain from discontinued operations................................................. 60,000

Number of $2.50 cumulative preferred shares outstanding .......... 6,000

Number of common shares, January 1, 2015................................ 75,000

Additional common shares issued on April 1, 2015....................... 15,000

a. Assuming a 27% tax rate, prepare an income statement for the year ended December 31, 2015.

b. Determine earnings per share for (i) income from continuing operations, (ii) discon- tinued operations, and (iii) net income.