Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 12.4 exercise 12.4 discontinued operati

Exercise 12.4 EXERCISE 12.4 Discontinued Operations LO12-2, LOM LO2-3 During the current year,...

50.1K

Verified Solution

Question

Accounting

Exercise 12.4

imageimage

EXERCISE 12.4 Discontinued Operations LO12-2, LOM LO2-3 During the current year, Sports +, Inc., operated two business segments: a chain of surf and dive shops and a small chain of tennis shops. The tennis shops were not profitable and were sold near year-end to another corporation. Sports + operations for the current year are summarized as follows. The first two captions, "Net sales" and "Costs and expenses," relate only to the company's continuing operations. NetsalesCostsandexpenses(includingapplicableincometax)Operatinglossfromtennisshops(netofincometaxbenefit)Lossonsaleoftennisshops(netofincometaxbenefit)$12,500,0008,600,000192,000348,000 The company had 182,000 shares of a single class of capital stock outstanding throughout the year. a. Prepare a condensed income statement for the year. At the bottom of the statement, show any appropriate earnings per share figures. (A condensed income statement is illustrated in Exhibit 12-2.) b. Which earnings per share figure in part a do you consider most useful in predicting future operating results for Sports +, Inc.? Why? Exercise 12.4

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

QUESTION 14 Leber’s hereditary optic neuropathy is a condition that leads to blindness. It results due to...

Medical Sciences
1.2K views

Daniel Purcel was diagnosed with type 1 diabetes mellitus when he was 12 years old. He...

Civil Engineering
1.2K views

Design an I-section purlin for an industrial building to support the galvanized corrugated iron sheet roof with...

Psychology
1.2K views

English As many have discussed how each of the poems you have read is subject to the...

Finance
1.2K views

1. Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

Physics
1.2K views

01 Two infinitely large sheets having charge densities and 2 respectively 01 02 are placed...

Algebra
1.2K views

of Which of the following is the reduced row echelon form for the augmented matrix...

Accounting
1.2K views

34. Explain the concept of continuous auditing and its advantages over traditional audit methods.@###@@###@@@@@@

Accounting
1.2K views

please help with this problem Perit Industries has $130,000 to...

Accounting
1.2K views

A low risk of material misstatement usually will result in: less reliance on substantive procedures....

Accounting
1.2K views

Glacial Company estimates that varibale costs will be 62.5% of sales and fixed costs will...

Finance
1.2K views

QUESTION 1 12 points The risk free rate is 2.25% and a portfolio has a...