Question

the 2020 income statement of wasmeier corporation showed net income of $480,000 and a loss from discontinued operations of $120,000. Grouper had 100,000 shares of common stock outstanding all year.Prepare Grouper’s income statement presentation of earnings per share.

Answer 1

Answer:

Wasmeier corporation grouper’s income statement presentation of earnings per share is given below.

Net income/(loss) from continued operation                 $480,000

Net income/(loss) from discontinued operations          ($120,000)

Consolidated Net income/(Loss)                                    $360,000

Basic EPS*                                                                           3.6

Dilutive EPS                                                                        3.6

Calculation:

EPS is calculated by dividing net profit with total outstanding common stock.

* EPS = 360,000/ 100,000 = 3.6 per share