Jordan Wing, Inc., a sporting goods retailer, began operations on January 2, 2006. It reported net income of \($3,091,660\) during 2008. Additional information about transactions occurring in 2008 follows:
1. Jordan Wing realized \($175,000\) from settling a trademark infringement lawsuit.
2. The corporation disposed of its catalog sales component at a pre-tax loss of \($345,000.\) This transaction meets the criteria for discontinued operations specified in SFAS No. 144.
3. Sale of 10,000 shares of Xerox stock held as a short-term investment resulted in a gain of \($23,450.
4.\) The firm changed its method of depreciating fixed assets from the straight-line method to the declining balance method, which was used to determine income in 2008.
5. Jordan Wing suffered a \($23,000\) impairment loss in 2007, which it failed to record.
6. The firm experienced an (extraordinary) uninsured tornado pre-tax loss in the amount
of \($83,500.\)
Required:
Prepare an income statement for the year ended December 31, 2008, starting with income from continuing operations before taxes; include proper earnings per share disclosures.
Jordan Wing had 150,000 common shares outstanding for the year. Assume a 35% tax rate on all items.