Net income is the income after consideration of all the expenses (including tax). Earning per share is calculated by dividing the net earnings by the total number of shares issued to determine the net earnings earned per share. It is the actual income with respect to one share. To Calculate : The net income and earnings per share amount that would be reported in A 20X2 comparative income statement for both 20X2 and 20X1.

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Chapter 1, Problem 1.23E

To determine

Concept Introduction:

Net income is the income after consideration of all the expenses (including tax).

Earning per share is calculated by dividing the net earnings by the total number of shares issued to determine the net earnings earned per share. It is the actual income with respect to one share.

To Calculate: The net income and earnings per share amount that would be reported in A 20X2 comparative income statement for both 20X2 and 20X1.

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