Reference no: EM131765876

Question - Earnings Per Share

The stockholders' equity section of Tkachuk Corporation appears below as of December 31, 2007.

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

$202,000,000

Net income for 2007 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 dividends of $360,000 were declared and paid in 2007. Dividends of $1,000,000 were declared and paid to common stockholders in 2007.

Instructions - Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation.