The stockholders’ equity section of Tkachuk Corporation appears below as of Dece

Question

The stockholders’ equity section of Tkachuk Corporation appears below as of December 31, 2014.

Net income for 2014 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $12,304,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $363,464 were declared and paid in 2014. Dividends of $1,330,000 were declared and paid to common stockholders in 2014.

Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation. (Round answers to 2 decimal places, e.g. 1.48.)

Answer Format:

Earnings Per Share

Thank you!

8% preferred stock, $50 par value, authorized 100,866 shares, outstanding 90,866 shares $4,543,300 100,866 shares, outstanding 90,866 shares 10,200,000 Additional paid-in capital 20,776,000 Retained earnings $134,180,000 Net income 38,742,000 172,922,000 $208,441,300

Explanation / Answer

Earnings Per Share:

Net Income Before Extraordinary item (46862640 / 100866) $464.60   

Less: Extraordinary Item (8120640 / 100866) $80.51

Net Income / (Loss) (38742000 / 100866) $384.09

Particulars Amount ($) Net Income 38742000 Add: Extraordinary Item (12304000 * (1-0.34)) 8120640 Net Income before Extraordinary Item 46862640

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