Kingbird Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,738,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,443,000. In both years, the company incurred a 9% interest expense on $2,381,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $570,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Kingbird Corporation on June 1, 2019, consisted of 986,000 shares of common stock outstanding and 19,500 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On October 1, 2019, Kingbird sold an additional 501,000 shares of the common stock at $20 per share. Kingbird distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Kingbird was able to sell an additional 805,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years.

Identify whether the capital structure at Kingbird Corporation is a simple or complex capital structure.

Determine the weighted-average number of shares that Kingbird Corporation would use in calculating earnings per share for the fiscal year ended:

				Weighted-average number of shares
(1)		May 31, 2020
(2)		May 31, 2021

Prepare, in good form, a comparative income statement, beginning with income from operations, for Kingbird Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Kingbirds annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.)

KINGBIRD CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2020 and 2021
	2020	2021
	$	$
	$	$
Earnings per share:
	$	$
	$	$

*List of accounts for above table: Dividends Expenses Extraordinary Loss Income Before Extraordinary Loss Income Before Taxes Interest Expense Income From Continuing Operations Income From Operations Income Taxes Loss From Discontinued Operations Net Income / (Loss) Retained Earnings, June 1 Retained Earnings, May 31 Revenues Total Expenses Total Revenues