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Problem - Earnings per share, discontinued operations - The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $400,000 after applicable income tax.
Required -
1. Determine the per-share figures for common stock for (a) income before discontinued operations and
2. Determine the per-share figures for common stock for (b) net income.
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