Bonita Corporation had income from continuing operations of $10,653,500 in 2017.
ID: 2524847 • Letter: B
Question
Bonita Corporation had income from continuing operations of $10,653,500 in 2017. During 2017, it disposed of its restaurant division at an after-tax loss of $200,300. Prior to disposal, the division operated at a loss of $321,100 (net of tax) in 2017 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Bonita had 10,000,000 shares of common stock outstanding during 2017. Prepare a partial income statement for Bonita beginning with income from continuing operations.
Explanation / Answer
Bonita Corporation
Income statement (Partial)
For the year 2017
Particulars Amount ($) Amount ($) Income from continuing operations 10,653,500 Discontinued Operations : Loss from operations of discontinued restaurant division (321,100) Loss from disposal of restaurant division (200,300) Total loss on discontinued operations (521,400) Net Income $101,332,100 Earning Per Share : Income from continuing operations [$10,653,500 / 10,000,000] $1.07 Discontinued Operations [$521,400 /10,000,000] ($0.06) Net Income [$101,332,100 / 10,000,000] $1.01