Question

Problem 1- Earnings Per Share:

Refer to the following data for Mansion Movers, LLC. as of 12/31/2019

            Loss from lawsuit (unusual & infrequent)                                               $(17,500)

            Loss from continuing operations                                                                           $(38,940)

            Income from discontinued operations                                                         $24,000

            Preferred Stock Dividend                                                                          ($6,200)

            WACSO                                                                                                        10,000

Instructions:

Prepare an abbreviated income statement and calculate EPS

Answer 1

Abbreviated income statement	Amount($)
Loss from lawsuit (unusual & infrequent)	(17,500)
Loss from continuing operations	(38,940)
Income from discontinued operations	24,000
Total Earnings(a)=	(32440)
WASCO(b)	10,000 shares
EPS(a)/(b)	3.244 per share

Notes:All income from Continuing Operations,Discontinued Operation,Extraordinary Activities except Prefered Stock Dividend shall form part of Total Earnings in calculation of EPS. Preferred Stock Dividend is payable to   Preferred Stock Holders but not to Equity Stock Holders & hence it sahll not included for Earnings available to equity stock holders.