From the following data for Norton Company for the year ended December 31, prepare a multiple-step income statement.

Show earnings per share for the following:

a) income from continuing operations,

b) loss on discontinued operations (less applicable income tax),

c) income before extraordinary item,

d) extraordinary item (less applicable income tax), and

e) net income.

Common stock, $50 par $200,000
Cost of merchandise sold 342,000
Administrative expenses 48,250
Income tax (applicable to continuing operations) 142,000
Interest expense 3,750
Loss on discontinued operations, net of applicable tax of $2,700 5,400
Sales 865,000
Selling expenses 83,000
Uninsured flood loss, net of applicable income tax of $4,500 14,000
Income Statement
Income statement or statement of financial performance measures the ability of the company to generate income. This composes of different items. Income from its own operations and the extraordinary items.

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)