Income Statement and Earnings per Share for Discontinued Operations

Apex Inc. reports the following for a recent year:

Income from continuing operations before income tax expense	$1,000,000
Loss from discontinued operations	$240,000*
Weighted average number of shares outstanding	20,000
Applicable tax rate	40%
*Net of any tax effect.

a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense.

Apex Inc.
Partial Income Statement
For the Year Ended December 31
Income from continuing operations before income tax expense	$
Income tax expense
Income from continuing operations	$
Loss on discontinued operations
Net income	$

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b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items.

Apex Inc.
Partial Income Statement
For the Year Ended December 31
Earnings per common share:
Income from continuing operations	$
Loss from discontinued operations
Net income	$