The net income reported on the income statement of Augustine Inc. for the year ended October 31,

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The net income reported on the income statement of Augustine Inc. for the year ended October 31, 2015, was $2,540,000. The number of common shares outstanding as at November 1, 2014, was 100,000, and the number of $1.50 cumulative preferred shares was 100,000. On May 1, 2015, Augustine repurchased and retired 20,000 common shares, and on May 15 it declared a 10% share dividend on the common shares. During fiscal 2015, Augustine discontinued a division of the company, resulting in a gain of $340,000 after taxes. Determine earnings per share for (a) income from continuing operations, (b) discontinued operations, and (c) net income.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

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