Blue Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Blue employs a fiscal year ending May 31. Income from operations before income taxes for Blue was $ 1,277,000 and $ 724,000, respectively, for fiscal years ended May 31, 2021 and 2020. Blue experienced a loss from discontinued operations of $ 421,000 on March 3, 2021. A 20% combined income tax rate pertains to any and all of Blue Corporations profits, gains, and losses. Blues capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Blue issued 41,000 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears. There were 951,600 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Blue sold an additional 402,000 shares of the common stock at $ 16 per share. Blue distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years.

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Your answer is incorrect.

Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for:

				Weighted-average number of common shares
(1)		The year ended May 31, 2020.
(2)		The year ended May 31, 2021.

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Your answer is partially correct.

Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2021 and 2020. The statement will be part of Blue Corporations annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.)

BLUE CORPORATION Comparative Income Statement For the Years Ended May 31, 2021 and 2020
	2021	2020
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues	$	$
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues	$	$
Per share of common stock
	$	$
	$	$