On August 1, 20x1, Desert, Inc. adopted a plan to discontinue its childrens clothing division, which qualifies as a component of the business according to GAAP. The disposal of the division was expected to be concluded by March 30, 20x2. On December 31, 20x1, Deserts fiscal year-end, the following information relative to the discontinued operation was accumulated:

Operating Income (pre-tax) of the Component for Jan 1 - Dec 31, 20x1	$ 658,000
Net Book Value of the Component at Dec 31, 20x1	3,575,000
Fair Value of the Component (Estimated Selling Price)	3,600,000
Estimated Disposal Costs	120,000
Income Tax Rate	30%

Plus this information:

Desert finalized the sale of the component on March 30, 20x2 for net cash proceeds of $3,350,000. Operating income of the discontinued component from Jan 1 Mar 30, 20x2, was $240,000. (This $240,000 is NOT included in the $2,470,000 Income Before Taxes listed below.) Use this information and the Additional Data to prepare a partial Income Statement for the year ended December 31, 20x2 beginning with Income from Continuing Operations. Include Earnings Per Share disclosures.

Income Before Taxes (from on-going operations) (x2)	$2,470,000
Income Tax Rate (x2)	30%
5% Preferred Stock ($100 Par, 10,000 shares issued)
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

E.P.S.

Continuing Operations $ Blank 4

Discontinued Operations $ Blank 5

Net Income $ Blank 6

Question 2a: Using the information presented above, answer the following:

Determine EPS for Income from Continuing Operations ('x2) ($ Blank4)

__(Round your answer to the nearest whole cent. Example: if you determine EPS from Cont. Operations to be $6.94724, round your answer to 6.95. If you determine EPS from Cont. Oper to be $6.94321, round your answer to 6.94. Do not use $ signs in recording your answer.)__

Question 2b: Using the information presented above, determine the following:

Determine EPS Discontinued Operations ('x2) ($ Blank 5)

__(Round your answer to the nearest whole cent. Example: if you determine EPS from Cont. Operations to be $6.94724, round your answer to 6.95. If you determine EPS from Cont. Oper to be $6.94321, round your answer to 6.94. Do not use $ signs in recording your answer.)__

Question 2c: Using the information presented above, determine the following:

Determine EPS for Net Income ('x2) ($ Blank 6)

__(Round your answer to the nearest whole cent. Example: if you determine EPS from Cont. Operations to be $6.94724, round your answer to 6.95. If you determine EPS from Cont. Oper to be $6.94321, round your answer to 6.94. Do not use $ signs in recording your answer.)__