1. Merrell Corp. discontinued a component of its business on October 17. For the year, the discontinued...
Question:
1. Merrell Corp. discontinued a component of its business on October 17. For the year, the discontinued component had operating income of $4,000,000. At the time of the sale, the assets of the discontinued component had book values of $10,000,000 and were sold for $12,000,000. Income from operations of the continuing parts of the company were $14,000,000 for the year. Assuming a 40% tax rate, what amount would Merrell report as income from discontinued operations?
2.Alpha Company has sales revenue of $5,000,000, cost of goods sold of $2,000,000, and net income of $750,000. For the last three years, the company has 1,000,000 shares of common stock authorized and 200,000 shares of common stock issued and outstanding. The company does not have any preferred stock. What is basic EPS for Alpha Company?
