Question
The following information is taken from the draft financial statement of Northstar Corp. at their December 31, 2015 year end. Income from continuing operations before
The following information is taken from the draft financial statement of Northstar Corp. at their December 31, 2015 year end.
- Income from continuing operations before taxes is $5,050,000.
- The average tax rate for the company is 30%.
- There are 130,000 common shares outstanding.
- Northstar Corp. follows IFRS.
Additional transactions which are not included in the above figures are as follows:
- Obsolete inventory was written off for $455,000.
- A prior period lawsuit, which had been deemed unlikely and unestimable, was settled and the company received $310,000.
- Equipment costing $690,000, with a book value of $258,000 was sold for $301,000.
- Disposal of a division generated a $210,000 loss before tax.
- The fair value of Available for Sale (AFS) investments increased by a pre-tax amount of $16,000.
- An underestimation of bad debts from 2013 totalling $2,000 was found and charged to retained earnings. This was due to a calculation error.
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.
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