Please help me Crane Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report toshareholders. Crane's fiscal year ends May 31. The following information is available.1.Income from operations before income tax for Crane was $1,500,000 and $1,900,000, respectively, for the fiscal years endedMay 31, 2021, and 2020.2.Crane experienced a loss from discontinued operations of $500,000 from a business segment disposed of on March 3, 2021.3.A 20% combined income tax rate applies to all of Crane Corporation's profits, gains, and losses.Crane's capital structure consists of preferred shares and common shares. The company has not issued any convertiblesecurities or warrants and there are no outstanding stock options.4.5.Crane issued 146,000 of $10 par value, 5% cumulative preferred shares in 2013. All of these shares are outstanding, and nopreferred dividends are in arrears.6.There were 1.60 million common shares outstanding on June 1, 2019. On September 1, 2019, Crane sold an additional500,000 common shares at $17 per share. Crane distributed a 20% stock dividend on the common shares outstanding onDecember 1, 2020.7.These were the only common share transactions during the past two fiscal years.Determine the weighted average number of common shares that would be used in calculating earnings per share on the currentcomparative income statement for:1.The year ended May 31, 20212.The year ended May 31, 2020

1. The year ended May 31, 2021 - 17,60,000 2. The year ended May 31,2020 - 19,75,000

Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 2. The year ended May 31, 2020

Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 2. The year ended May 31, 2020

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2P

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