Question

please complete the question and show how to get each part to the question

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 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $760,000. The book value of the division's assets was $1,330,000, resulting in a before-tax loss of $570,000 on the sale. The division incurred a before-tax operating loss from operations of $180,000 from the beginning of the year through December 15. The income tax rate is 25%. Chance's after-tax income from its continuing operations is $710,000. Required: Prepare an income statement for 2021 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) Print ferences CHANCE COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: Loss from operations of discontinued component Income tax benefit $ 710,000 $ 710,000 Loss on discontinued operations Net Income (los) Earings per share income from continuing operations Loss from discontinued operations Not income

Answer 1

Dear Student,

Please see below answer based on EPS calculation of " continued and Discontinued " operation ,,

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Chance Company had two Operating division
One manufacturing farm equipment
Office supplier	Amnt($)
After tax Income from Continue Operation -A	1,70,000
As per Question - Shares outstanding -B	1,00,000
Earning per share from Continuing Operation(A/B)	1.7
Loss amount from Discontinued Operation
Incurred a before tax Operating loss	-1,80,000
loss from sale of asset before tax	-5,70,000
Total Loss	-7,50,000
tax amount on Loss ( benefit to company ) @25%	1,87,500	(25%*($750,000)
Net loss after tax advantage - Discontinued Operation- A1	-5,62,500
As per Question - Shares outstanding -B	1,00,000
Earning per share from Continuing Operation(A1/B)	-5.63