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Problem 16-06 Concord Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and

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Problem 16-06 Concord 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 $1.775,000 and income from continuing operations for the fiscal year ended May 31, 2021. was $2.566.000. In both years, the company incurred a 10% interest expense on $2,446,000 of debt an oblation that requires Interest-only payments for 5 years. The company experienced a loss from discontinued operations of $617.000 on February 2021. The company uses a 20% effective tax rate for income taxes The capital structure of Concord Corporation on June 1, 2019, consisted of 954,000 shares of common stock outstanding and 20,100 shares of $50 par value, 5%, 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, Concord sold an additional 490,000 shares of the common stock at $20 per share. Concord distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020. Concord was able to sell an additional 794,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. Determine the weighted average number of shares that Concord Corporation would use in calculating earnings per share for the fiscal year ended: Weighted average number of shares 1,259,442 (1) May 31, 2020 (2) May 31, 2021 2,055,920 Prepare, in good form, a comparative income statement, beginning with income from operations, for Concord Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Concord's annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.) CONCORD CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2020 and 2021 2020 2021 Income From Operations 1,775,000 Interest Expense (244600) Income Before Taxes Income Taxes 1530400 Income Before Extraordinary Loss (50250) Extraordinary Loss Net Income (Loss) Eamings per share: Income Before Extraordinary Loss Extraordinary Loss Net Income /(Loss)

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