Reporting Earnings per Share Disclosures Siera Inc. had 350,000 shares of no par common stock outstanding...

Reporting Earnings per Share Disclosures

Siera Inc. had 350,000 shares of no par common stock outstanding throughout 2020 that declared and paid dividends of $75,000 in 2020. The company also had 45,000 shares of preferred stock that paid dividends of $7,500 in 2020 (declared in 2020). The company reported the following amounts in its income statement for the year ended December 31, 2020 (pretax).

Income from continuing operations	$1,875,000
Loss from discontinued operations	52,500

Required

a. Prepare the earnings per share section of the income statement for the year ended December 31, 2020, assuming a tax rate of 25%.

Use a negative sign to indicate a loss.
Round the per share amounts to two decimal places.

Per Share:
Income from continuing operations	Answer
Loss from discontinued component, net of tax savings	Answer
Net income	Answer

Required

b. Repeat requirement of part a except now assume that the company reported income from discontinued operations of $52,500.

Use a negative sign to indicate a loss.
Round the per share amounts to two decimal places.

Per Share:
Income from continuing operations	Answer
Income from discontinued component, net of tax	Answer
Net income	Answer

Expert Solution

ekkarill92 answered 2 years ago

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