Earnings Per Share The stockholders’ equity section of Tkachuk

(Earnings Per Share) The stockholders’ equity section of Tkachuk Corporation appears below as of December 31, 2004.

8% cumulative 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 2004 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. Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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