Gallant Company reported net income of $2,500,000. The income statement included one extraordinary item: a $500,000 gain from condemnation of land and a $200,000 loss on discontinued operations, both after applicable income tax.

There were 100,000 shares of $10 par common stock and 40,000 shares of $4 preferred stock outstanding throughout the current year.

Required:

Prepare the earnings per share section of Gallant Company.

Answer rating: 100% (QA)

Net income 2500000 Less gain on condemnation 500000 Plus loss from flood damage 200000 Income ... View the full answer