(LO 4) (EPS: Simple Capital Structure) A portion of the statement of income and retained earnings ofPierson Inc. for the current year follows.Income from continuing operationsLoss on discontinued operations, net of applicable income tax (Note 1)Net incomeRetained earnings at the beginning of the year$15,000,0001,340,00013,660,00083.250,00096,910,000Dividends declared:On preference shares-S6.00 per shareOn ordinary shares-S.75 per shareRetained earnings at the end of the year$300,00014.875.00015 175,000S81,735,000Note 1. During the rear, Pierson Inc. had a loss from discontinued operations of Sa.340,00o after applicableincome tax reduction of S1 200.000.At the end of the current year, Pierson Inc has outstanding 8.000.000 shares of S1o par ordinary shares and 50,000shares of 6% preference shares.On April 1 of the current year. Pierson Inc. issued 1000.o00 ord nary shares for S32 per share to help recover from theloss on discontinued operations.InstructionsCompute the earnings per share on ordinay shares fer the curentvear as it should be reported to shareholders.

Earnings available for common stockholders: Amount (P) Income from continuing operation…

(LO 4) (EPS: Simple Capital Structure) A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows. Income from continuing operations Loss on discontinued operations, net of applicable income tax (Note 1) $15,000,000 1,340,000 Net income 13,660,000 Retained earnings at the beginning of the year 83.250,000 96,910,000 Dividends declared: On preference shares-$6.00 per share On ordinary shares-$.75 per share Retained earnings at the end of the year $ 300,000 14.875.000 15,175,000 $81.735,000 Note 1. During the year. Pierson Inc. had a loss from discontinued operations of S1.340,00o after applicable income tax reduction of S1.200.000. At the end of the current year. Pierson Inc. has outstanding 8.000.000 shares of S10 par ordinary shares and 50,000 shares of 6% preference shares. On April 1 of the current year. Pierson Inc ssued 1.000.o00 ordinary shares for S32 per share to help recover from the loss on discontinued operations.

(LO 4) (EPS: Simple Capital Structure) A portion of the statement of income and retained earnings of Pierson Inc. for the current year follows. Income from continuing operations Loss on discontinued operations, net of applicable income tax (Note 1) $15,000,000 1,340,000 Net income 13,660,000 Retained earnings at the beginning of the year 83.250,000 96,910,000 Dividends declared: On preference shares-$6.00 per share On ordinary shares-$.75 per share Retained earnings at the end of the year $ 300,000 14.875.000 15,175,000 $81.735,000 Note 1. During the year. Pierson Inc. had a loss from discontinued operations of S1.340,00o after applicable income tax reduction of S1.200.000. At the end of the current year. Pierson Inc. has outstanding 8.000.000 shares of S10 par ordinary shares and 50,000 shares of 6% preference shares. On April 1 of the current year. Pierson Inc ssued 1.000.o00 ordinary shares for S32 per share to help recover from the loss on discontinued operations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Take me to the text Marry Inc. provided the following information from its accounting records for…

A: Earning per share = This can be computed by dividing the company return available to common stock…

Q: Balance at beginning of year Net income (loss) Deductions: Stock dividend (34,000 shares) RENN-DEVER…

A: Retained earnings are the amount of profit a company has left over after paying all its direct…

Q: nformation from the financial statements of Ames Fabricators, Inc., included the following: Common…

A: The monetary worth of an organization's earnings per outstanding share of common stock is known as…

Q: The following information relates to Perry Corporation for the year ended 2009 December 31: Common…

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: 10% cumulative preferred shares, 100,000 shares authorized, 73,000 shares outstanding Common shares,…

A: The earnings per share (EPS) number reveals how much money each share of common stock made over a…

Q: The following information is available from the accounting records of Pecos Company: / Se obtuvo la…

A: The stockholders' equity indicates the balance of assets that remain after paying all dues to the…

Q: Bonds payable, 6% 6% Preferred stock, P100 par Common stock, P10 par. Income before income taxes was…

A: Bonds payable: 5,000,000 Preferred stock: 1,000,000 Common stock: 2,000,000 Income before income…

Q: Note 1. During the year, Metlock Inc. suffered a major loss from discontinued operations of…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: a. Determine the per-share figure for common stock for income before discontinued operations. Round…

A: a) Income before discontinued operations = Net income - Gain on discontinued operations =…

Q: Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the…

A: When a domestic corporation distributes a dividend, receiving corporation is taxed on dividend and…

Q: A portion of the combined statement of income and retained earnings of Crane Inc. for the current…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: The following are extracts from the Statement of Financial Position dated 30/09/2023: Equity £1…

A: The objective of the question is to calculate the total amount that should be shown on the Statement…

Q: The equity section of Crane SA appears below as of December 31, 2022. Share capital-preference…

A: Earnings per share (EPS) is a financial metric that measures the profitability of a company and…

Q: Just prior to the end of the fiscal year, Biofuel Corporation reported the following information:…

A: The cash dividend decreases the total shareholder's equity of the business. The stock dividend and…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Dividends is distribution of profits to shareholders. Preference shareholders get preference for…

Q: The balance sheet for Shankland Corporation follows: 000 009 $ 000 '006 Current assets Long-term…

A: Working capital = current assets - current liabilities

Q: Apex Inc. reports the following for a recent year: Income from continuing operations before income…

A: Income statement is the one which is prepared by the entity for the purpose of determining the…

Q: a company has the following items: share capital-ordinaty: $920,000 treasury shares : $85,000…

A: Total equity = Share capital-ordinaty + retained earning - treasury shares

Q: A portion of the combined statement of income and retained earnings of Blue Inc. for the current…

A: Earnings per share refer to the earnings attributable to each common share of the company.

Q: answer must be in table format or i will give down vote

A: Table for Calculating Earnings Per ShareDescription AmountNet Income $13,670,000Less: Dividends on…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

(LO 4) (EPS: Simple Capital Structure) A portion of the statement of income and retained earnings of
Pierson Inc. for the current year follows.
Income from continuing operations
Loss on discontinued operations, net of applicable income tax (Note 1)
Net income
Retained earnings at the beginning of the year
$15,000,000
1,340,000
13,660,000
83.250,000
96,910,000
Dividends declared:
On preference shares-S6.00 per share
On ordinary shares-S.75 per share
Retained earnings at the end of the year
$300,000
14.875.000
15 175,000
S81,735,000
Note 1. During the rear, Pierson Inc. had a loss from discontinued operations of Sa.340,00o after applicable
income tax reduction of S1 200.000.
At the end of the current year, Pierson Inc has outstanding 8.000.000 shares of S1o par ordinary shares and 50,000
shares of 6% preference shares.
On April 1 of the current year. Pierson Inc. issued 1000.o00 ord nary shares for S32 per share to help recover from the
loss on discontinued operations.
Instructions
Compute the earnings per share on ordinay shares fer the curentvear as it should be reported to shareholders.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The equity section of Windsor SA appears below as of December 31, 2022. Share capital-preference (6% preference shares, R$50 par value, authorized 94,600 shares, outstanding 84,600 shares) Share capital-ordinary (R$1 par, authorized and issued 10,000,000 shares) Share premium-ordinary Retained earnings Net income Earnings Per Share: Income from continuing operations Discontinued operations, net of tax R$125,960,000 Net income 31,020,000 R$ R$4,230,000 Net income for 2022 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of R$11,280,000 (before tax) as a result of discontinued operations. Preference dividends of R$253,800 were declared and paid in 2022. Dividends of R$ 940,000 were declared and paid to ordinary shareholders in 2022. 10,000,000 Compute earnings per share data as it should appear on the income statement of Windsor SA. (Round answers to 2 decimal places, e.g. 1.48.) 19,270,000 156,980,000 R$190,480,000
1. The following information was taken from the accounts of JT Corp at year end:Total income since incorporation P900,000Total cash dividends paid P260,000Proceeds from sale of donated shares P 90,000Total value of share dividends distributed P60,000Excess of proceeds over cost of treasury stocks sold P140,000What should be the current balance of retained earnings? a. P780,000b. P520,000c. P720,000d. P580,0002. see imagechoices: a. 176,000b. 263,000c. 204,000d. 321,000
A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.
Man
Presented below are selected ledger accounts of Tamarisk Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% Your answer is correct. Compute net income for 2020. Net income tA $ 96800 $55,000 110,000 88,000 594,000 231,000 22,000 16,500 44,000 33,000 99,000
Please write to text format answer
Ute Company reported the following capital structure during the current year: 5% cumulative preference share capital, par value P100, 25,000 shares issued and outstanding Ordinary Share capital, par value P35, 100,000 shares issued and outstanding The entity reported net income of P5,000,000 for the current year. The entity paid P125,000 in preference dividends in the current year. 7. What amount should be reported as the basic earnings per share? a. 48.75 b. 50.00 c. 51.25 2,500,000 3,500,000