1.

Computing Earnings per Share

Lee Corp. had 200,000 weighted average common shares outstanding in 2020 and 10,000 weighted average preferred shares outstanding in 2020. Lee Corp. reported net income of $900,000 in 2020, and declared and paid $100,000 and $20,000 of common stock and preferred stock dividends, respectively. Compute earnings per share for Lee Corp. for 2020.

Enter the answer in dollars and cents, rounded to the nearest penny.

Earnings per share:

2.

Preparing Multiple-Step Income Statement The following information is from Atlanta Corp. for the 12 months ended December 31, 2020. Prepare a multiple-step income statement (excluding the earnings per share disclosures) assuming a tax rate of 25%. Report income tax expense in its own separate section. 2020 Account Sales revenue Cost of goods sold Selling and administrative expenses Interest expense Gain on sale of short-term investments $ 480,000 300,000 90,000 3,000 5,280 Do not use negative signs with any of your answers. Atlanta Corp. Income Statement For the Year Ended December 31, 2020 + $ 0 0 0 Operating expenses 0 0 Other revenues and gains 0 Other expenses and losses 0 0 0 $ 0