At January 1, 2013, Foxmore Company Had 80,000 Shares of Common

question 88

Essay

At January 1, 2013, 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, 2013, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2013:
$$\begin{array} { | l| r } \hline \text { Sales revenues from regular business operations } & \$ 3,000,000 \\\hline \text { Cost of goods sold } & 900,000 \\\hline \text { Operating expenses from their regular business operations } & 600,000 \\\hline \text { Gain on disposal of several items of property, plant \& equipment } & 15,000 \\\hline \text { Income tax expense on continuing operations } & 330,000 \\\hline \text { Loss on the termination of a discontinued business segment, net of } & \\ \text { tax } & 120,000 \\\hline \text { Losses on damage caused by earthquake, net of tax } &280,000 \\\hline\end{array}$$
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Please prepare earnings per share information in the following format. (Round all amounts to nearest cent.)
$$\begin{array} { | l | l | } \hline \text { Earnings per share } &\quad\quad\quad\quad \\\hline \text { Income (loss) from continuing operations } & \\\hline \text { Income (loss) from discontinued operations } & \\\hline \text { Income (loss) before extraordinary items } & \\\hline \text { Extraordinary loss } & \\\hline \text { Net income (loss) } & \\\hline\end{array}$$

Understand the treatment of underapplied or overapplied overhead in financial records.

Understand and apply the concept of predetermined overhead rates in the calculation of applied manufacturing overhead.

Identify and calculate underapplied or overapplied manufacturing overhead and its implications.

Understand the distinction between job-order costing and process costing systems.

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Definitions:

Tax Burden

The measure of taxes that individuals or businesses must pay as a portion of their income or profit, reflecting the financial impact of taxation.

Antipoverty Programs

Government initiatives aimed at reducing poverty and improving living standards for the poor through financial aid, education, and job training.

Benefits Principle

A tax policy principle suggesting that taxes should be levied according to the benefits received by the taxpayer from government services.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.