Ace Company had 200,000 shares of common stock outstanding on December 31, 2008. During the year 2009 the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2009 Ace Company reported net income of $249,690 after a casualty loss of $40,600 (net of tax).© BrainMass Inc. brainmass.com December 15, 2020, 5:45 pm ad1c9bdddf
At the bottom of the income statement the EPS relating income from continuing operations, extraordinary loss and net income would be reported
Income from continuing operations = 249,690+40,600 = $290,290
Extraordinary loss ...
The solution explains the earnings per share that should be shown in the income statement below net income.