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 Calculating EPS on Discontinued Operations
09-23-2014, 07:49 AM
Post: #1
 Canadian Kid Junior Member Posts: 1 Joined: Sep 2014 Reputation: 0
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!
09-29-2014, 12:24 PM
Post: #2
 tazammal Banned Posts: 1 Joined: Sep 2014
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.
12-24-2014, 08:11 PM
Post: #3
 blue_oceans79 Junior Member Posts: 10 Joined: Aug 2009 Reputation: 0
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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