Question
Presented below is an income statement for Larsen Company for the year ended December 31, 2020. Larsen Company Income Statement For the Year Ended December
Presented below is an income statement for Larsen Company for the year ended December 31, 2020.
Larsen Company
Income Statement
For the Year Ended December 31, 2020
Net sales | Dh900,000 |
Costs and expenses |
|
Cost of goods sold | Dh650,000 |
Selling, general, and administrative expenses | Dh70,000 |
Other expenses | Dh20,000 |
Income taxes | Dh48,000 |
Net income | Dh112,000 |
Additional information:
1. Selling, general, and administrative expenses included a usual but infrequent charge of Dh8,000 due to a loss on the sale of investments.
2. Other expenses consisted of interest expense, Dh5,000, and an extraordinary loss of Dh15,000 before taxes due to earthquake damage.
3. On January 1, 2020, Larsen changed from straight-line to sum-of-the-years-digits depreciation. The after-tax effect of the change was Dh17,500, and related taxes were Dh7,500.
4. Loss of operation from discontinued a foreign branch is Dh40,000 and the gain resulted from the sale of its assets is Dh10,000
5. Larsen had 25,000 shares of common stock outstanding during 2020.
Required:
Which of the following represent the earnings per share based on income before discontinued operations under the US Generally Accepted Accounting Principles?
Select one:
a. 4.90
b. 3.64
c. 4.88
d. 5.48
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