Calculating EPS on Discontinued Operations

09232014, 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! 

09292014, 12:24 PM
Post: #2




RE: 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. 

12242014, 08:11 PM
Post: #3




RE: Calculating EPS on Discontinued Operations
EPS from discontinued operations shall be straight forward.
earning/loss from discontinued operations/number of shares. 

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