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    EPS: stockholder's equity section of Tkachuk Corporation

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    E5-11 The stockholder's equity section of Tkachuk Corporation appears below as of December 31, 2008.
    8% preferred stock, $50 par value, authorized
    100,000 shares, outstanding 90,000 shares $4,500,000
    Common stock, $1.00 par, authorized and issued
    10 million shares 10,000,000
    Additional paid-in Capital 20,500,000
    Retained earnings $134,000,000
    Net income 33,000,000 167,000,000
    Net Income $202,000,000

    Net income for 2008 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividend of $360,000 were declared and paid in 2008. Dividend of $1,000,000 were declared and paid to common stockholders in 2008.
    Required:
    Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation.

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    Solution Summary

    Your tutorial is attached in Excel. Please click in cells to see computations.

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