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Sarasota Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Sarasota employs a fiscal year ending May 31.

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Sarasota Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Sarasota employs a fiscal year ending May 31. Income from operations before income taxes for Sarasota was $1,277,000 and $724,000, respectively, for fiscal years ended May 31, 2021 and 2020. Sarasota experienced a loss from discontinued operations of $421,000 on March 3, 2021. A 20% combined Income tax rate pertains to any and all of Sarasota Corporation's profits, gains, and losses. Sarasota's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options Sarasota issued 41,000 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears. There were 951,600 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Sarasota sold an additional 402,000 shares of the common stock at $16 per share. Sarasota distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years. Your answer is incorrect. Try again. Determine the weighted average number of common shares that would be used in computing earnings per share on the current comparative Income statement for: Weighted average number of common shares (1) The year ended May 31, 2020 (2) The year ended May 31, 2021. Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2021 and 2020. The statement will be part of Sarasota Corporation's annual report to stockholders and should indude appropriate earnings per share presentation. (Round earnings per Share to 2 decimal places, eg. $2.55.) SARASOTA CORPORATION Comparative Income Statement For the Years Ended May 31, 2021 and 2020 2021 2020 Income From Operations Before Income Taxes Income Taxes T Income From Continuing Operations Loss From Discontinued Operations Net Income /(Loss) Per share of common stock Income From Continuing Operations loss From Discontinued Operations Net Income (LOSS)

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