Zeus Company Reports the Following for the Current Year *Net of Any Tax Effect
a Prepare a Partial Income

question 12

Essay

Zeus Company reports the following for the current year:
$\begin{array}{|l|c|}\hline \text { Income from continuing operations before income tax } & \$ 500,000 \\\hline \text { Extraordinary property loss from hurricane } & \$ 60,000^{*} \\\hline \text { Loss from discontinued operations } & \$ 90,000^{*} \\\hline \text { Weighted average number of common shares outstanding } & 40,000 \\\hline \text { Applicable tax rate } & 40 \% \\\hline\end{array}$ *Net of any tax effect
a Prepare a partial income statement for Zeus Company beginning with income from continuing operations before income tax.
b Calculate the earnings per common share for Zeus,including per-share amount for unusual items.

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Definitions:

Required Rate

Typically refers to the minimum return rate needed on an investment, considering risk and funding costs.

Screening Decision

A decision as to whether a proposed investment project is acceptable.

Salvage Value

The projected remaining worth of an asset after its lifespan has ended.

Net Operating Income

The profit a company makes from its core operations, excluding expenses and revenues from non-operating activities.