In 2014, Linz Corporation Reported an Extraordinary Loss of $1,000,000

question 78

Multiple Choice

In 2014, Linz Corporation reported an extraordinary loss of $1,000,000, net of tax. It declared and paid preferred stock dividends of $100,000 and common stock dividends of $300,000. During 2014, Linz had a weighted average of 500,000 common shares outstanding. As a result of the extraordinary loss, net of tax, the earnings per share would decrease by

• A) $1.20
• B) $1.40
• C) $1.80
• D) $2.00

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Definitions:

Inexpensive

Not costing a lot of money; affordable.

Limited Availability

The condition of being available to consumers or users in restricted quantities or for a short time.

Expensive

Having a high price or cost, often relative to the perceived value or quality of the item.

Shopping Products

Shopping products are items that consumers purchase less frequently and usually compare on attributes such as quality, price, and style before making a decision.