Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September the company adopted a plan to sell the assets of the division.
Consider the following:
The actual sale was completed on December at a price of $ The book value of the division's assets was $ resulting in a beforetax loss of $ on the sale.
The division incurred a beforetax operating loss from operations of $ from the beginning of the year through December
Chance's aftertax income from its continuing operations is $
The income tax rate is
Required:
Prepare an income statement beginning with income from continuing operations. Include appropriate EPS disclosures assuming that shares of common stock were outstanding throughout the year.
Note: Amounts to be deducted should be indicated with a minus sign. Round EPS answers to decimal places.
