Reference no: EM131824533
Question - The equity sections from Salazar Group's 2011 and 2012 year-end balance sheets follow.
Stockholders' Equity (December 31 , 201 1 )
Common stock-$4 par value, 50,000 shares authorized, 20,000 shares issued and outstanding . . . . . . . . . . . . . . . . $ 80,000
Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . 60,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 60,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000
Stockholders' Equity (December 31 , 201 2)
Common stock-$4 par value, 50,000 shares authorized, 23,700 shares issued, 1 ,500 shares in treasury . . . . . . . . . $ 94,800
Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . 89,600
Retained earnings ($1 5,000 restricted by treasury stock) . . . . . . . . . . . 200,000 384,400
Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 5,000)
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $369,400
The following transactions and events affected its equity during year 2012.
Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.
July 5 Declared a $0.50 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock's market value is $12 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10.
Required:
What is the per share cost of the treasury stock purchased?
How much net income did the company earn during year 2012?