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

question 46

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: 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:

Collective Profit

The total profit earned by a group of entities or an industry, considering all its members.

Pure Monopoly

A market structure characterized by a single seller selling a unique product in the market. In a pure monopoly, the single seller controls the entire market supply and sets prices.

Allocative Inefficiency

A situation where resources are not allocated in a way that maximizes the welfare or utility of consumers, often leading to a loss of economic efficiency.

Regulation Prices

Regulation prices involve government-imposed limits on the prices that can be charged for goods and services in certain markets to protect consumer interests.