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

question 161

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) before extraordinary items?
(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:

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Refers to the way something becomes apparent or is shown in actions or symptoms.

B. F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Carl Rogers

An influential psychologist who developed client-centered therapy and emphasized the importance of the self-concept in understanding human behavior.