David Company s income statements for the year ended

December 31 #2437
David Company's income statements for the year ended December 31, 2017, and December
31, 2016 and presented here: Additional facts are as follows:a. The loss from operations of the
discontinued Drexler Division (a strategic component of the company) from January 1, 2017 to
September 30, 2017 (the portion of the year prior to the date of sale), and from January 1, 2016
to December 31, 2016, is included in David’s income statements for the year ended December
31, 2017 and December 31, 2016, respectively, in “other, net.”b. David has a simple capital
structure with only common stock outstanding, and the net income per share of common stock
was based on the weighted average number of common shares outstanding during each year.c.
David’s common stock is listed on the New York Stock Exchange and closed at $ 13 per share
on December 31, 2017, and $ 15 per share on December 31, 2016.Required:Determine from
the additional facts listed whether the presentation of those facts in David’s income statements
is appropriate. If the presentation is appropriate, discuss the rationale for the presentation. If the
presentation is not appropriate, specify the appropriate presentation and discuss its rationale.
Do not discuss disclosure requirements for the notes to the financial statements.View Solution:
David Company s income statements for the year ended December 31

ANSWER
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