Carla Vista Corporation, a publicly traded company is preparing the comparative financial statements to be included in the annual report to shareholders. Carla Vista's fiscal year ends May 31. The following information is available. 1. 2. 3. 4. Income from operations before income tax for Carla Vista was $1,400,000 and $1,800,000, respectively, for the fiscal years ended May 31, 2021, and 2020. Carla Vista experienced a loss from discontinued operations of $400,000 from a business segment disposed of on March 3, 2021. A 20% combined income tax rate applies to all of Carla Vista Corporation's profits, gains, and losses. Carla Vista's capital structure consists of preferred shares and common shares. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Carla Vista issued 138,000 of $10 par value, 5% cumulative preferred shares in 2013. All of these shares are outstanding, and no preferred dividends are in arrears. There were 1.30 million common shares outstanding on June 1, 2019. On September 1, 2019. Carla Vista sold an additional 300,000 common shares at $18 per share. Carla Vista distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common share transactions during the past two fiscal years. 5. 6. 7. Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 2. The year ended May 31, 2020 Prepare a comparative income statement for the years ended May 31, 2021, and 2020. Assume that Carla Vista discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share answers to 2 decimal places, eg. 15.25.) CARLA VISTA CORPORATION Comparative Income Statement 2021 2020 $ $ $ Earnings per common share: $ $ $ $