Chapter 15, Problem 15.26E

Computing earnings per share

Falconi Academy Surplus had 55,000 shares of common stock and 5,000 shares of 1%, $10 par value preferred stock outstanding through December 31, 2016. Income from continuing operations for 2016 was $679,750, and loss on discontinued operations (net of income tax saving) was $66,000. Falconi also had an extraordinary gain (net of tax) of $170,500. Compute Falconi’s earnings per share for 201 6, starting with income from continuing operations.