EPS) Presented below are selected ledger accounts of Tran Corporation as of December 31, 2014. Cash ......................$

Question:

EPS) Presented below are selected ledger accounts of Tran Corporation as of December 31, 2014.

Cash ......................$ 125,000

Administrative expenses .............. 250,000

Selling expenses .................. 200,000

Net sales .....................1,350,000

Cost of goods sold ................. 525,000

Cash dividends declared (2014) ........... 50,000

Cash dividends paid (2014) ............ 37,500

Discontinued operations (loss before income taxes) .... 100,000

Depreciation expense, not recorded in 2013 ....... 75,000

Retained earnings, December 31, 2013 ......... 225,000

Effective tax rate = 30%


Instructions

(a) Compute net income for 2014.

(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2014.


Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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