Lancaster Company had earnings net of tax but before extraordinary items of $500,000. They had an extraordinary loss net of tax of $200,000. Lancaster had a weighted average number of shares of 200,000 common shares. They also had 10,000 shares of convertible $100 par preferred stock, 6%, with one year's dividend in arrears, convertible into 20,000 shares of common stock. Their tax rate is 40%. Show in good format all earnings per share calculations necessary and income statement presentation.
Lancaster Company had earnings net of tax but before extraordinary items of $500,000. They had an extraordinary loss net of tax of $200,000. Lancaster had a weighted average number of shares of 200,000 common shares. They also had 10,000 shares of convertible $100 par preferred stock, 6%, with one year's dividend in arrears, convertible into 20,000 shares of common stock. Their tax rate is 40%. Show in good format all earnings per share calculations necessary and income statement presentation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 200.
Transcribed Image Text:Hi can i get help please?
Show all calculations and income statement please?
Lancaster Company had earnings net of tax but before extraordinary items of $500,000.
They had an extraordinary loss net of tax of $200,000. Lancaster had a weighted average
number of shares of 200,000 common shares. They also had 10,000 shares of convertible $100
par preferred stock, 6%, with one year's dividend in arrears, convertible into 20,000 shares of
common stock. Their tax rate is 40%.
Show in good format all earnings per share calculations necessary and income statement presentation.
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