The Regan Books Company accounting records include the following for 2010 (in thousands):Other revenues………………………………………………………………….. $ 2,400Income tax expense extraordinary gain ………………………………. 1,600Income tax expense income from continuing operations………… 2,880Extraordinary gain…………………………………………………………….. 4,000Sales revenue…………………………………………………………………….. 102,000Total operating expenses…………………………………………………….. 97,200Requirements1. Prepare Regan Books single-step income statement for the year ended December 31, 2010, including EPS. Regan Books had 1,800 thousand shares of common stock and no preferred stock outstanding during the year.2. Assume investors capitalize Regan Books earnings at 5%. Estimate the price of one share of the company’s stock.View Solution:
The Regan Books Company accounting records include the following



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