Toby Corporation (follows IFRS) owns lumber yards and hardware stores in Western Canada.

Its operating results for 2020 show the following:

Operating revenues $21,040,000

Operating expenses 13,620,000

Profit from operations 7,420,000

An additional analysis of the data indicates that the lumber yards are very profitable but the hardware stores have been unprofitable. During the first nine months of 2020, the hardware stores lost $700,000 out of operating revenues of $3,900,000 and operating expenses of $4,600,000. Consequently, on October 1, 2020 the hardware stores operation was discontinued and sold at a loss of $1,500,000 before taxes. The hardware stores operating results are included in the operating revenues/expenses and profit from operations of $7,420,000 above, but the loss on disposal is not included in the operating revenues/expenses and profit from operations shown above.

During the year, Toby had other expenses and losses of $60,000, which are not included in the

above operating results. The corporation has a 30% income tax rate. At December 31, 2020 Toby Corporation has 560,000 common shares issued, of which 80,000 were issued on October 1, 2020.

Instructions:

a) Prepare an income statement for the year ended December 31, 2020. (5 marks)

b) Calculate earnings per share for the year. (1 mark)