Compute earnings per share data as it should appear


(Multiple-Step Statement with Retained Earnings) Presented below is information related to Brokaw Corp. for the year 2012.

  • 6% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares $ 4,500,000
  • Common stock, $1 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 2012 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $12,000,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $270,000 were declared and paid in 2012. Dividends of $1,000,000 were declared and paid to common stockholders in 2012.

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

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Accounting Basics: Compute earnings per share data as it should appear
Reference No:- TGS0706120

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