Question:
The Esposito Import Company had 1 million shares of common stock outstanding during 2013. Its
income statement reported the following items: income from continuing operations, $5 million; loss from
discontinued operations, $1.6 million; extraordinary gain, $2.2 million. All of these amounts are net of
tax.
Required:
Prepare the 2013 EPS presentation for the Esposito Import Company.
Answer:
Earnings per share:
Income from continuing operations $5.00
Loss from discontinued operations (1.60)
Extraordinary gain 2.20
Net income $5.60
The Esposito Import Company had 1 million shares of common stock outstanding during 2013. Its
income statement reported the following items: income from continuing operations, $5 million; loss from
discontinued operations, $1.6 million; extraordinary gain, $2.2 million. All of these amounts are net of
tax.
Required:
Prepare the 2013 EPS presentation for the Esposito Import Company.
Answer:
Earnings per share:
Income from continuing operations $5.00
Loss from discontinued operations (1.60)
Extraordinary gain 2.20
Net income $5.60
