Wade NV has 150,000 ordinary shares outstanding. In 2022, the company reports income before income tax of €1,210,000.

Additional transactions not considered in the €1,210,000 are as follows. 

1. In 2022, Wade NV sold equipment for €40,000. The machine had originally cost €80,000 and had accumulated depreciation of €30,000.

2. The company discontinued operations of one of its subsidiaries during the current year at a loss of €190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was €90,000 before taxes; the loss from disposal of the subsidiary was €100,000 before taxes.

3. An internal audit discovered that amortization of intangible assets was understated by €35,000 (net of tax) in a prior period. The amount was charged against retained earnings.

4. The company had a gain of €125,000 on the condemnation of much of its property.

Instructions

Analyze the above information and prepare an income statement for the year 2022, starting with income before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 20% on all items.)