Maher Inc. reported income before income tax during 2015 of €790,000.

Additional transactions occurring in 2015 but not considered in the €790,000 are as follows.

1. The corporation experienced an uninsured flood loss in the amount of €90,000 during the year.

2. At the beginning of 2013, the corporation purchased a machine for €54,000 (residual value of €9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2013, 2014, and 2015 but failed to deduct the residual value in computing the depreciation base.

3. Sale of securities held as a part of its portfolio resulted in a gain of €47,000.

4. The corporation disposed of its recreational division at a loss of €115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations.

5. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2013 income by €60,000 and decrease 2014 income by €20,000 before taxes. The FIFO method has been used for 2015.

Instructions

Prepare an income statement for the year 2015, starting with income before income tax. Compute earnings per share as it should be shown on the face of the income statement. Ordinary shares outstanding for the year are 120,000 shares. (Assume a tax rate of 30% on all items.)