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E11-15. Loder Company had a good year, and recorded a larger gain on the same of a discontinued business segment. Bates Company, on the other
E11-15. Loder Company had a good year, and recorded a larger gain on the same of a discontinued business segment. Bates Company, on the other hand, had no discontinued business segments on its income statement. Otherwise, both income statements were very similar. Lodger Company announced earnings of $1.25 per share and Bates announced earnings of $1.20 per share. Your friend Bob tells you that you should invest in Loder because it has higher quality earnings because it is larger. What is your response
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