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The following information is taken from the draft financial statement of Star Inc. at their March 31, 2015 year end. Income from continuing operations before
The following information is taken from the draft financial statement of Star Inc. at their March 31, 2015 year end. Income from continuing operations before taxes is $5,380,000. The average tax rate for the company is 35%. There are 250,000 common shares outstanding. Star Inc. follows IFRS. Additional transactions which are not included in the above figures are as follows: 1. Disposal of a division generated a $250,000 loss before tax. 2. An underestimation of depreciation from 2013 totalling $3,500 was found and charged to retained earnings. This was due to a calculation error. 3. Obsolete inventory was written off for $436,000. 4. A prior period lawsuit, which had been deemed unlikely and unestimable, was settled and the company received $303,000. 5. Machinery costing $610,000, with a book value of $237,000 was sold for $306,000. 6. The fair value of Available for Sale (AFS) investments increased by a pre-tax amount of $15,000. Please make sure your final answers are accurate to the nearest whole number unless otherwise stated. a) Calculate income before tax and discontinued operations. Income = $ b) Calculate net income before discontinued operations. Net income = $ c) Calculate net income. Net income = $ d) Calculate comprehensive income/loss. Comprehensive income (loss) = $ e) Calculate earnings per common share (EPS) from net income. Please make sure your final answer(s) are accurate to 2 decimal places. EPS = $
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