Question
On August 1, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to
On August 1, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to sell this component for $280,800 cash. The book value of the assets of the Services Division was $324,000. The disposal date was August 1. The income tax rate is 25%, and the accounting year-end is December 31. On December 31, the pretax income from all operations, including an operating loss of $36,000 incurred by the Services Division prior to August 1 was $720,000. However, the amount of $720,000 does not include any gain or loss from the sale of the discontinued component. There were 100,000 weighted average common shares outstanding during the year.
Required
Prepare a partial income statement beginning with income from continuing operations. Include the earnings per share disclosures.
- Use a negative sign to indicate a loss.
- Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started