Current Attempt in Progress

Crane Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Crane's fiscal year ends May $31.$ The following information is available.

Income from operations before income tax for Crane was $$1,300,000$ and $$1,700,000,$ respectively, for the fiscal years ended May $31,2024$ and $2023.$

Crane experienced a loss from discontinued operations of $$600,000$ from a business segment disposed of on March $3,2024.$

A $20\%$ combined income tax rate applies to all of Crane's profits, gains, and losses.

Crane'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.

Crane issued $133,000$$$10$ par value, $5\%$ cumulative preferred shares in $2016.$ All of these shares are outstanding, and no preferred dividends are in arrears.

There were $1\mathrm{.}70$ million common shares outstanding on June $1,2022.$ On September $1,2022,$ Crane sold an additional $500,000$ common shares at $$20$ per share. Crane distributed a $20\%$ stock dividend on the common shares outstanding on December $1,2023.$

These were the only common share transactions during the past two fiscal years.