1) "If plant assets of a manufacturing company are sold at a gain of $1850000 with related taxes of $543000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects as"

A. a discontinued operations gain net of applicable taxes, $1307000.

B. a gain of $1850000 and an increase in income tax expense of $543000.

C. operating income net of applicable taxes, $1307000.

D. a prior period adjustment net of applicable taxes, $1307000.

2) "In Year 7, Cullumber Company reported net income of $585000. It declared and paid preferred stock dividends of $111000 and common stock dividends of $54000. During Year 7, Cullumber had a weighted average of 300000 common shares outstanding. Compute Cullumber's Year 7 earnings per share."

A. $1.40

B. $1.58

C. $1.95

D. $2.32