Question

Whispering Corporation had income from continuing operations of $10,775,400 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $200,100. Prior to disposal, the division operated at a loss of $321,500 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Whispering had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Whispering beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Answer:

                                   Whispering Corporation

                             Partial income statement for 2020

Income from continuing operations                           $10,775,400

Income from discontinuing operation:

Division operated loss                             ($321,500)

Division disposal Loss                             ($200,100)

                                                                                    ($521,600)

Net Income                                                                  $10,253,800