Castalia Co. has net income (500K), preferred dividends declared ($100K), and common shares outstanding (230K). What is the company’s EPS, to the nearest penny?

Castalia Co. has the following: earnings before income tax ($675K), discontinued operations gain ($100K), gain on disposal of discontinued operations ($150K), tax rate (30%), common shares outstanding (250K), and preferred dividends declared ($50K). Both of the discontinued items are pre-tax. What is the amount of Tax Expense reported on the face of the income statement?

Required

what is income from continuing operations?

what is the combined amount (one number) on the income statement for the discontinued items, assuming both the items above are in pre-tax dollars?

what is net income?

what is the reported EPS number (to the nearest penny) for income from continuing operations?

what is the reported EPS number (to the nearest penny) for discontinued operations (one number)?

what is the reported EPS number (to the nearest penny) for net income?

Castalia pays its employees $1,500 for the week. Which account is debited?

Castalia borrows $30,000 on a 7%, 2-year note on October 15. Assuming the company prepares adjusting entries annually, what is the amount of Interest Expense recorded at December 31, to the nearest dollar?

Answer rating: 100% (QA)

Based on the information available in the question we can answer as follows Requirement 1 Earnings p... View the full answer