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EPS: stockholder's equity section of Tkachuk Corporation

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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