Problem 16-09 a-b Ivanhoe Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Ivanhoe employs a fiscal year ending May 31. Income from operations before income taxes for Ivanhoe was $1,319,000 and $621,000, respectively, for fiscal years ended May 31, 2021 and 2020. Ivanhoe experienced a loss from discontinued operations of $416,000 on March 3, 2021. A 20% combined income tax rate pertains to any and all of Ivanhoe Corporations profits, gains, and losses. Ivanhoes capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Ivanhoe issued 37,300 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears. There were 1,071,600 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Ivanhoe sold an additional 366,000 shares of the common stock at $18 per share. Ivanhoe distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years.

Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for: Weighted-average number of common shares (1) The year ended May 31, 2020. (2) The year ended May 31, 2021. LINK TO TEXT

Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2021 and 2020. The statement will be part of Ivanhoe Corporations annual report to stockholders and should include appropriate earnings per share presentation.