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