Rachel worked in one of her family's two furniture stores. When her grandfather decided to expand the business and build three more stores, Rachel realized that he would need a lot of
capital to get the construction started. She suggested that her grandfather raise the money
by selling shares of stock in the company to just a few people, not to the general public. Her
grandfather filed Articles of Incorporation with the government. He sold 1,000 shares of
stock to 100 people and kept 1,500 shares.

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.)