Question

Skysong Corporation had income from operations of $6,503,700. In addition, it suffered an unusual and infrequent pretax loss of $789,900 from a volcano eruption, interest revenue of $18,630, and a write-down on buildings of $56,090. The corporation’s tax rate is 30%. Prepare a partial income statement for Crane beginning with Income from operations. The corporation had 4,958,200 shares of common stock outstanding during 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1

Answer:

net income 3,973,438

EPS    0.80

Explanation:

income from operations 6,503,700

non-operating income and losses

interest revenue                    18,630

building holding loss          (56,090)

volcano eruption loss       (789,900)

earnings before taxes     5,676,340‬

tax expense 30%            (1,702,902‬)  

net income                        3,973,438‬

earnings per share:  3,973,438 / 4,958,200 = 0,80138719