Brady, Inc., reports the following for 2010:
Income from continuing operations before income tax...... $500,000
Extraordinary property loss from hurricane........... $ 60,000*
Loss from discontinued operations............. $ 90,000*
Weighted average number of shares outstanding........ 40,000
Applicable tax rate................... 40%
*Net of any tax effect.
a. Prepare a partial income statement for Brady, Inc., beginning with income from continuing operations before income tax.
b. Assuming 200,000 shares, calculate the earnings per common share for Brady, Inc., including per-share amounts for unusual items.