Textbook Problem

Income statement and earnings per share for discontinued operations

Apex Inc. reports the following for a recent year:

Income from continuing operations before income tax	$ 1,000,000
Loss from discontinued operations	$240,000*
Weighted average number of shares outstanding	20,000
Applicable tax rate	40%
*Net of any tax effect.

• A. Prepare a partial income .statement for Apex Inc., beginning with income from continuing operations before income tax.
• B. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items.