Toby Corporation reported the following for 2015 (all amounts are before taxes):
Sales, net ............................................................... $14,600,000
Cost of goods sold .................................................... 11,430,000
Selling and administrative expenses ................................. 225,000
Interest expense ........................................................ 15,000
Gain on sale of equipment ............................................ 6,000
Loss from discontinued operations .................................. 80,000
Weighted average number of common shares ...................... 175,000
Number of $2 cumulative preferred shares outstanding .......... 200,000
a. Assuming a 27% tax rate, prepare an income statement for the year ended December 31, 2015.
b. Determine earnings per share for (i) income from continuing operations, (ii) discontinued operations, and (iii) net income.