At January 1, 2014, Foxmore Company Had 80,000 Shares of Common

question 148

Multiple Choice

At January 1, 2014, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock. During the year, they issued 40,000 additional shares of common stock. At December 31, 2014, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2014:
$\begin{array}{|l|r|}\hline\text { Sales revenues from regular business operations } & \$ 3,000,000 \\\hline \text { Cost of goods sold } & 900,000 \\\hline \text { Operating expenses from their regular business operations } & 600,000 \\\hline \text { Gain on disposal of several items of property, plant \& equipment } & 15,000 \\\hline \text { Income tax expense on continuing operations } & 330,000 \\\hline \text { Loss on the termination of a discontinued business segment, net of } \\\text { Lax }&120,000\\\hline\text { Losses on damage caused by earthquake, net of tax }&280,000\\\hline\end{array}$
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At December 31, 2014, how much is the earnings per share for income (loss) from discontinued operations? (Please round all calculations to the nearest cent.)

• A) $(1.20)
• B) $7.85
• C) $10.65
• D) $(2.80)

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Definitions:

Mental Stamina

The ability to sustain prolonged mental effort required to overcome obstacles or to navigate difficult or complex situations.

Physical

Relating to the body or material objects, as opposed to the mind or virtual elements.

Spiritual

Relating to or affecting the human spirit or soul as opposed to material or physical things.

Wholesale Salesperson

A person who sells products to parties for resale, use in producing other goods or services, or operating an organization.