Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

تمرين 63

Earnings per share, extraordinary item
The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included two extraordinary items: an $800,000 gain from condemnation of land and a $400,000 loss arising from flood damage, both after applicable income tax. Determine the per-share figures for common stock for (a) income before extraordinary items and (b) net income.