Kingbird Corporation had income from continuing operations of $10,615,500 in 201

Question

Kingbird Corporation had income from continuing operations of $10,615,500 in 2017. During 2017, it disposed of its restaurant division at an after-tax loss of $191,900. Prior to disposal, the division operated at a loss of $320,300 (net of tax) in 2017 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Kingbird had 10,000,000 shares of common stock outstanding during 2017. Prepare a partial income statement for Kingbird beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Explanation / Answer

Income from continuing operations 10615500 Discontinued operations Loss from operations of discontinued restaurant division(net of tax) 320300 Loss from disposal of restaurant division(net of tax) 191900 512200 Net income 10103300 Earnings per share: Income from continuing operations 1.06 Discontinued operations, net of tax -0.05 Net income 1.01 Alternatively loss amount could be written with a negative sign before

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