Exercises 1073 7 (EPS Simple Capital Structure) A portion of the combined statement of income and retained Erd. for the current year ended December 31, 2017 follows 3) before discontinued operations Income discontinued operations, net of applicable income tax (Note 1) $ 5.000.00o Loss fr 400.000 4.600,000 25,400,000 30,000,000 Net income Retained earnings at beginning of year Dividends declared On preferred shares, $4.00 per share On common shares, $2.00 per share Retained earnings at end of year $ 200,000 3,000,000 3,200.000 $26,800,000 Note 1. During the year, Snap Inc. suffered a loss from discontinued operations of $400,000 after the applicable income tax reduction of $100,000 At the end of 2017, Snap Inc, has outstanding 1.5 million common shares and 50,000 shares of preferred. On April 1 2017, Snap Inc. issued 1 million common shares for S6 per share to help finance the loss. Instructions (a) Calculate the earnings per share on common shares for 2017 as it should be reported to shareholders (b) Assume that Snap Inc. issued a 10% stock dividend on September 1, 2017, Calculate the earnings per share common shares for 2017 as it should be reported to shareholders