Question

Coronado Corporation had income from continuing operations of $10,661,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $190,500. Prior to disposal, the division operated at a loss of $321,600 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Coronado had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Coronado beginning with income from continuing operations

Answer 1

Answer and Explanation:

The preparation of the partial income statement for Coronado beginning with income from continuing operations is presented below:

Income from continuing operations $10,661,000

Discontinued Operations :  

Loss from operations of discontinued restaurant division ($321,600)  

After tax Loss from disposal of restaurant division ($190,500)  

Net Income  $10,148,900

Earning Per Share :  

Income from continuing operations [$10,661,500 ÷  10,000,000] $1.07

Discontinued Operations [$521,100 ÷ 10,000,000]  ($0.05121)

Net Income [$10,148,900 ÷  10,000,000]  $1.01489