Answer:
Earnings per share from continuing operations is $3.41 per share.
Earnings per share from discontinued operations is -$0.53 per share.
Explanation:
The earnings per share data can be computed by preparing a partial income statment as follows:
Skysong Corporation
Income Statement (Partial)
As at December 31, 2019
<u>Particulars Amount ($) </u>
<u>Continuing operations</u>
Income from continuing operations before taxes 22,887,900
Taxes on continuing operations (22,887,900 * 35%) <u> (8,010,765) </u>
Income from continuing operations after taxes 14,877,135
Preferred dividends declared <u> (1,089,660) </u>
Income from continuing operations after pref. div. <u> 13,787,475 </u>
<u>Discontinued operations</u>
Discontinued operations (loss before taxes) (3,284,900)
Tax benefit on discontinued oper. (3,284,900 * 35%) <u> 1,149,715 </u>
Discontinued operations (loss after taxes) <u> (2,135,185) </u>
<u>Earnings per share:</u>
Continuing operations (13,787,475 / 4,044,060) 3.41
Discontinued operations (2,135,185 / 4,044,060) (0.53)
