Appendix EX 3-23 Earnings per share, extraordinary item The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included two extraordinary items: an $800,000 gain from condemnation of land and a $400,000 loss arising from flood damage, both after applicable income tax. Determine the per-share figures for common stock for (b) net income. Appendix EX 17-25Income statement and earnings per share for extraordinary items anddiscontinued operationsApex Inc. reports the following for a recent year:Income from continuing operations before income taxExtraordinary property loss from hurricaneLoss from discontinued operationsWeighted average number of shares outstandingApplicable tax rate*Net of any tax effect.$1,000,000$140,000*$240,000*20,00040%a. Prepare a partial income statement for Apex Inc., beginning with incomefrom continuing operations before income tax.b. Calculate the earnings per common share for Apex Inc., including per-share amounts for unusual items.

Name: Appendix EX 3-23 Earnings per share, extraordinary item The net income
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Description: Appendix EX 3-23 Earnings per share, extraordinary item The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout th

23 (b)Calculate Earnings per share for common stock for income before extraordinary items.

Answered: Appendix EX 17-25 Income statement and…

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Appendix EX 3-23 Earnings per share, extraordinary item

The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included two extraordinary items: an $800,000 gain from condemnation of land and a $400,000 loss arising from flood damage, both after applicable income tax. Determine the per-share figures for common stock for (b) net income.

Appendix EX 17-25
Income statement and earnings per share for extraordinary items and
discontinued operations
Apex Inc. reports the following for a recent year:
Income from continuing operations before income tax
Extraordinary property loss from hurricane
Loss from discontinued operations
Weighted average number of shares outstanding
Applicable tax rate
*Net of any tax effect.
$1,000,000
$140,000*
$240,000*
20,000
40%
a. Prepare a partial income statement for Apex Inc., beginning with income
from continuing operations before income tax.
b. Calculate the earnings per common share for Apex Inc., including per-
share amounts for unusual items.

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