Midtown Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. Year 20X6 was

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Midtown Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. Year 20X6 was interesting for Midtown, which reported the following on its income statement (in millions):

Net revenues ................................................................$3,930

Total expenses and other.............................................. 3,354

Income from continuing operations.............................. 576

Discontinued operations, net of tax.............................. 84

Income before extraordinary item, net of tax ............... 660

Extraordinary gain, net of tax ...................................... 8

Net income................................................................... $ 668

During 20X6, Midtown had the following (in millions, except for par value per share):

Common stock, $0.01 par value, 900 shares issued ................ $ 9

Treasury stock, 180 shares at cost...........................................(3,568)

Required

Show how Midtown should report earnings per share for 20X6.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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