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Calculating EPS on Discontinued Operations
09-23-2014, 07:49 AM
Post: #1
Calculating EPS on Discontinued Operations
Hi, I'm studying accounting and I can't figure out how to calculate the Discontinued Operations Earnings per Share on the Statement of Comprehensive Income Statement. I figured out Income from Continuing Operations and Net Income by using this formula:

(Net Income - Preferred Dividends)/ # of common shares outstanding.

This formula gave me the correct answer for Net Income and Income from Continuing Operations but when I plug in Discontinued operations, I get the wrong answer.

The EPS is 0.67. Discontinued Operations is listed as Loss from Disposal: 250,000 (net of tax $62,500), Loss from Operations: 150,000(net of tax $37,500) for a total of 400,000.

Preferred dividend = 50,000
Common dividend = 200,000
Total outstanding common shares for year = 600,000

Any help is appreciated!
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Calculating EPS on Discontinued Operations - Canadian Kid - 09-23-2014 07:49 AM

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