The information presented is for Chips Ahoy.

Chips Ahoy decided to discontinue the entire wholesale operations and to retainits manufacturing operations. On September 15, Chips Ahoy sold the wholesale operations to Famous Amos Company. During 2014, there were 498,800 shares of common stockoutstanding all year.

Prepare a multiple-step income statement in good form. Only calculateearnings per share on net income.

Question #2

The balance sheet of Star Company is for December 31, 2013:

Retained earnings balance, January 1, 2014 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2014 Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item (net of tax) Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $986,000 26,298,000 16,199,000 71,700 4,767,000 821,000 1,417,000 113,400 394,800 456,200 94,200 255,600 84,800