Franco Academy Surplus had 10,000 shares of common stock and 7,000 shares of 5%, $10 par preferred

Question:

Franco Academy Surplus had 10,000 shares of common stock and 7,000 shares of 5%, $10 par preferred stock outstanding through December 31, 2012. Income from continuing operations for 2012 was $125,000, and loss on discontinued operations (net of income tax saving) was $5,000. Franco also had an extraordinary gain (net of tax) of $25,000.

Requirement

1. Compute Franco’s EPS amounts for 2012, starting with income from continuing operations.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...