The following data were selected from the records of Botanica Greenhouses Inc. for the current fiscal year ended August 31:
|
Administrative expenses |
$ 82,200 |
|
Cost of merchandise sold |
750,000 |
|
Fixed asset impairment |
115,000 |
|
Gain on condemnation of land |
25,000 |
|
Income tax: |
|
|
Applicable to continuing operations |
27,200 |
|
Applicable to gain on condemnation of land |
10,000 |
|
Applicable to loss on discontinued operations (reduction) |
24,000 |
|
Interest expense |
15,200 |
|
Loss on discontinued operations |
60,200 |
|
Restructuring charge |
40,000 |
|
Sales |
1,252,500 |
|
Selling expenses |
182,100 |
Instructions
Prepare a multiple step income statement, concluding with a section for earnings per share in the form illustrated in this chapter. There were 10,000 shares of common stock (no preferred) outstanding throughout the year. Assume that the gain on condemnation of land is an extraordinary item.