The net income reported on the income statement of Cutler Co. was $2,460,000. There were 50,000 shares of $18 par common stock and 20,000 shares of $5 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $300,000 after applicable income tax. a. Determine the per-share figure for common stock for income before discontinued operations. Round your answer to the nearest cent.
$ per share
b. Determine the per-share figure for common stock for net income. Round your answer to the nearest cent.
$ per share

Answer and Explanation:

The computation is shown below:

a. The earning per share is

= (PAT - income tax discontinued operations - Preference dividend) ÷ number of common stock

= ($2,460,000 - $300,000 - (20,000 × $5)) ÷ (50,000 shares)

= $41.2 per share

b. The earning per share is

= (PAT - Preference dividend) ÷ number of common stock

= ($2,460,000 - (20,000 × $5)) ÷ (50,000 shares)

= $47.2 per share

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer///the stewardship worldview;