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Splish Corporation had income from continuing operations of $10,703,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $205,000. Prior to disposal, the division operated at a loss of $322,000 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Splish had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Splish beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Respuesta :

Answer and Explanation:

The Preparation of partial income statement for Splish is shown below:-

Splish Corporation

Partial income statement

For the year 2020

Particulars                                     Amount

Income from operations                $10,703,000

Less:

Discontinued operations:

Loss from operations      $322,000

Loss from disposal          $205,000   $527,000

Net income                                           $10,176,000

Earnings per share:

Income from continuing

operations                                          1.07

($10,703,000 ÷ 10,000,000)

Less:

Discontinued operations, net of tax  0.05

($527,000 ÷ 10,000,000)

Net income                                        1.02

($10,176,000 ÷ 10,000,000)