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Question 2 (
At December 31, 2020, Tres Hombres Corporation had the following shares outstanding:
8% cumulative preferred shares, 101,500 shares outstanding		10,150,000
Common shares, 3,990,000 shares outstanding		19,450,000
During 2020, the corporation's only share transaction was the issuance of 490,000 common shares on September 1. During 2020, the following also occurred:
Income from continuing operations before tax		24,510,000
Discontinued operations (loss before tax)		3,361,000
Preferred dividends declared		812,000
Common dividends declared		1,530,000
Effective tax rate		34%
Calculate earnings per share information as it should appear in the financial statements of Tres Hombres Corporation for the year ended December 31, 2020.
Determine Net Income (including how it would be presented in the Income Statement (3.5 marks)
Determine Weighted average common shares outstanding (1 mark)
Determine preferred dividends entitled/declared (0.50 marks)
Determine the numerator for the calculation of EPS from continuing operation (0.50 marks)
Calculate EPS based on the presentation requirements (2.5 marks)
Income from continuing operations
Discontinued operations
Basic EPS

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